Elkem Esg Report - 2020

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РАСКРЫВАЕМ ВАШ
ПОТЕНЦИАЛ
Отчет ESG за 2020 год

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Об Elkem | Ключевые моменты | Письмо генерального директора | Введение | Экология | Социум | Управление | Отчет совета директоров о корпоративном управлении | Снижение выбросов парниковых га- t
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зов Elkem | Контакты
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Об Elkem в двух словах
Кто мы и чем занимаемся Содержание

Компания Elkem является одним из ведущих Об Elkem.................................................................. 2
мировых поставщиков современных материалов Ключевые моменты..........................................4
на основе кремния, осуществляет деятельность
по всей цепочке создания стоимости от кварца Письмо генерального директора .......... 6
до специальных силиконов и занимает ведущие Введение............................................................... 8
позиции на рынке специальных Вызовы и возможности – цепочка ценности Elkem ... 9
ферросилициевых сплавов и углеродных мате- Оценка существенности .................................................. 13
риалов. В дополнение к нашим подразделениям Вклад компании Elkem в реализацию Повестки ООН на
Silicones, Silicon Products и Carbon Solutions компа- период до 2030 года........ 14
ния Elkem создала бизнес-инициативы Digital
Экология ..............................................................16
Office, Battery Materials и Biocarbon в 2020 году.
Смягчение последствий изменения климата ...............18
Энергетический менеджмент .........................................20
Управление отходами......................................................... 21
Управление водными ресурсами......................... 24
Прочие выбросы в атмосферу ...............................27
Глобальный бизнес компании Elkem объединяет
сильные стороны трех уникальных рыночных Социум...................................................................29
Производственный объект платформ. Металлургический бизнес в Норвегии Социум................................................................................... 29
Офис продаж был основан в 1904 году и представляет собой Здоровье и безопасность................................................... 31
Штаб-квартира сильные промышленные традиции и постоянное Трудовое право .............................................................. 33
совершенствование. Химический бизнес во Фран- Разнообразие и равенство ............................................... 35
ции дополняет сильная культура для специализа- Участие сообщества и диалог .......................37
ции, инноваций и НИОКР, Трудоустройство ............................................................... 39
В то время как значительное присутствие Elkem в Управление....................................................... 40
КОНЕЧНЫЙ ПРОДУКТ
Транспорт/электрокары, строитель- Китае обеспечивает широкие возможности роста Корпоративное управление..................................40
ВХОДНЫЕ ФАКТОРЫ ЗАВОДЫ
ство, электроника, потребительские и динамичную и гибкую перспективу бизнеса. Управление рисками ......................................................... 43
Биоуглерод, уголь товары, здравоохранение Комплаенс.............................................................................44
и электродные Кварц
материалы Обеспечение экологичности продукции .......................46
Elkem - компания, акции которой котируются на Ответственные сорсинг и цепочка поставок ...............47
фондовой бирже Осло (тикерный код: ELK), со
Отчет совета директоров о корпоратив-
штаб-квартирой в Осло, Норвегия. В компании
ном управлении .........................................51
работает более 6 800 сотрудников на 29 произ-
Энергия
водственных площадках и в обширной сети Снижение выбросов парниковых газов
офисов продаж по всему миру.
Черный металл
Elkem..................................................................... 60
Контакты.............................................................. 64
2
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Об Elkem | Ключевые моменты | Письмо генерального директора | Введение | Экология | Социум | Управление | Отчет совета директоров о корпоративном управлении | Снижение выбросов парниковых га-
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ESG - главный приоритет и ключевое преимущество
ESG – Ключевые моменты 2020

Экология
■ Сильный профиль, основанный на 83% возобновляемой энергии.
■ Амбициозная биоуглеродная стратегия - в 2020 г. цель в 20% доли прямых выбросов
E
достигнута.
83% 25% 77% 64%

■ Объявление о принятии инвестиционного решения о строительстве промышленного
экспериментального завода по производству биоуглерода в г.Чикутими, Квебек, Канада.
■ Повышенное внимание к выбросам в 3 зоне охвата с амбициозной целью, отчет в
Доля общего валового Доля женщин в Доля участков без Доля работников, на ко- 2021 году.
потребления электро- компании. Наша цель травм. Наша цель торых распространяется
■ Значительное снижение уровня NOx, SO2 и пыли за последние годы.
энергии, выработанной - увеличить долю - нулевой травма- действие коллективных
из возобновляемых ис- тизм на всех пред- договоров. Все сотрудни- ■ Заявление о размещении завода по производству аккумуляторных материалов в
женщин во всей в
приятиях. Херёйе, Телемарк, Норвегия.
точников. компании и на руко- ки информированы и по-
водящих должностях. лучают поддержку в их
праве организовываться Социум
и вести коллективные ■ Высокое внимание к охране труда и технике безопасности с целью достижения нуле-
S
переговоры с руко- вого травматизма. Общий коэффициент регистрируемого травматизма в 2020 году нахо-
водством. дится на уровне 2,3.
■ Разнообразие, основанное на деятельности по всему миру.
■ Обновленный анализ существенности заинтересованных сторон в 2020 году для обес-
печения диалога и взаимодействия с ключевыми заинтересованными сторонами.
■ Глобальный канал для рассмотрения жалоб, созданный в 2020 году для обеспечения
вклада местных сообществ и других заинтересованных сторон.
67% 20% 24%

В ТОПЕ СПИСКА CDP Управление
Признание прозрачности ■ Сильный акцент на надлежащем корпоративном управлении.
и действий по смягчению ■ Новая программа обучения сотрудников по борьбе со взяточничеством и коррупцией в 2020 году.
G
Доля отходов, кото- Доля прямых выбро- Сокращение выбро- последствий изменения ■ Развернута программа информирования о нарушениях на всех основных языках
рые были повторно сов CO2 на основе сов NOx на норвеж- климата, место в 5% луч- ■ Повышенное внимание к вопросам ESG во всей группе
использованы и пере- возобновляемых био- ских металлургиче- ших среди всех компа-
работаны. генных источников в ских заводах по ■ Разработана глобальная система управления цепочкой поставок,
ний, участвовавших в
Утилизация побочных Норвегии. Характер сравнению с 2015 го- рейтинге. включающая предварительную квалификацию поставщиков, которая будет внедрена в 2021 году.
продуктов и побочных источников делает дом. ■ Решение о внедрении системы TCFD как части процесса управления рисками, с отчетностью до 2021 года.
потоков является клю- эти выбросы углерод-
4 INTRODUCTION
чом к устранению от- но нейтральными. 5
ходов.
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Письмо генерального директора

Преодоление вызовов и позициониро-
вание для роста
В 2020 году мир пережил кризис здравоохранения и экономический кризис. Компания Elkem успешно
справилась с этими вызовами, сосредоточившись на трех приоритетах: Здоровье и безопасность на
первом месте, поддержание высокого и стабильного производства и позиционирование для при-
быльного роста. Мы сохраняем оптимизм в отношении долгосрочных глобальных тенденций, кото-
рые будут стимулировать спрос на нашу продукцию.
Пандемия коронавируса (Covid-19) ознаменовала собой 2020 После пандемии наступит этап, когда внимание будет сосредо- Подразделение "Silicon Products" представляет собой сильное ■ Аккумуляторные материалы - это уникальная возможность
год. Впервые заболевание было выявлено в Китае в декабре точено на восстановлении общества и построении экономики наследие компании Elkem. Оно занимает прочные позиции на роста на основе графита и кремния. Elkem разрабатывает
2019 года и объявлено пандемией в марте 2020 года. Имея после коронавируса, лучшей и более устойчивой для всех. Мы мировом рынке и успешно защитило свои позиции в 2020 году,
экспериментальный завод по производству аккумуляторно-
более 3000 сотрудников в Китае, компания Elkem была под- готовы извлечь из этого выгоду. работая на высоких мощностях. Оно продолжит фокусировать-
го графита, который будет открыт в начале 2021 года. В ав-
вержена потенциальному распространению заболевания уже ся на повышении рентабельности за счет операционного со-
густе Elkem выбрала индустриальный парк Herøya в Норве-
на ранней стадии. Однако именно в нашем головном офисе в вершенства, одновременно избирательно стремясь к росту.
Мы считаем, что долгосрочные мегатренды, такие как устой- гии в качестве площадки для потенциального крупно-
Осло, Норвегия, 6 марта мы столкнулись с первым подтвер- чивое развитие, спрос на энергию, урбанизация, повышение
Подразделение Carbon Solutions является сильным и высоко- масштабного завода.
жденным случаем заболевания. уровня жизни, старение и рост населения, а также цифрови-
прибыльным лидером рынка в своих сегментах. Ему удалось ■ Биоуглерод - это потенциально прорывная технология
зация, будут продолжаться. Это будет стимулировать рост производства углеродно-нейтральных металлов. В сентя-
Компания Elkem создала корпоративную целевую группу для спроса на современные материалы, включая силиконы, сохранить высокую рентабельность в 2020 году, несмотря на
сложную рыночную ситуацию. Подразделение сосредоточит- бре компания Elkem приняла решение инвестировать в но-
координации наших глобальных мер по борьбе с коронавиру- кремний и углеродные сплавы. вый экспериментальный завод по производству
сом. Наше основное внимание по-прежнему уделялось здоро- ся на сохранении своих сильных позиций за счет операци-
онного совершенства, избирательно стремясь к росту. биоуглерода в Канаде.
вью и безопасности, в соответствии с философией "Нулевого Наше видение по-прежнему заключается в предоставлении
■ Рекуперация энергии представляет собой циркулярные ре-
травматизма" компании Elkem. К концу года компания Elkem за- передовых решений в области материалов, формирующих
Эта корпоративная стратегия поддерживается тремя инициа- шения для снижения
регистрировала 110 подтвержденных случаев заболевания сре- будущее. И у нас есть четкая корпоративная стратегия,
тивами: выбросов и повышения эффективности. Elkem планирует
ди более чем 6 800 наших сотрудников. Мы рады, что все они направленная на укрепление наших конкурентных позиций
выздоровели и чувствуют себя хорошо. открыть новый завод по рекуперации энергии в Salten в Норве-
за счет специализации и роста.
■ В 2020 году мы создали Цифровой офис для проведения гии в 2021 году.
COVID-19 также сыграл решающую роль в макроэкономических цифровой трансформации во всей компании. Мы считаем,
Постоянное повышение производительности является ключе-
условиях в 2020 году. В то время как в Китае в первом квартале что цифровые технологии могут изменить отрасли, и мы Одним словом, мы продуктивно провели трудный год, спра-
вым фактором для обеспечения прибыльного роста. Еще до
2020 года наблюдалось замедление экономического роста, стремимся стать одним из из лидеров. вившись с трудностями и позиционируя себя для роста. Это
воздействия Covid-19 мы начали подготовку новой программы
остальной мир сильно пострадал во втором и третьем кварта- ■ ESG приобретает все большее значение среди наших заин- идет рука об руку с миссией Elkem: вносить вклад в устойчи-
повышения производительности, чтобы улучшить положение
лах. Благодаря нашему диверсифицированному глобальному тересованных сторон, и компании Elkem необходим силь- вое будущее, предлагая передовые решения в области
компании с точки зрения затрат и упорядочить организацию.
присутствию и децентрализованной операционной модели ный профиль ESG и его показатели для того, чтобы оправ- кремния, силиконов и углерода, повышая ценность для на-
Как было объявлено в марте, Elkem определила потенциал
компания Elkem справилась с этими проблемами очень хорошо. дать ожидания, поскольку мы твердо смотрим в будущее. В ших заинтересованных сторон.
ежегодных улучшений в размере более 350 миллионов нор-
В основном мы смогли сохранить наше производство на нор- вежских крон. ноябре компания Elkem получила "золотой" рейтинг устой-
мальной мощности. чивости от EcoVadis. В декабре мы получили рейтинг "А" от В 2020 году команда Elkem продемонстрировала свою силу в
CDP, войдя в число ведущих мировых компаний по про- очень трудные времена, и я очень горжусь тем, что являюсь ее
В мае мы оптимизировали нашу корпоративную структуру с
Это негативно сказалось на наших финансовых показателях. зрачности и действиям в области климата. частью!
четырех до трех бизнес-подразделений, чтобы ускорить спе-
Наиболее значительным это влияние было в первые три квар- ■ Наконец, мы уделяем еще больше внимания нашим сотруд-
циализацию и еще больше повысить операционную эффек-
тала, начиная с Китая, а затем в Европе и Америке, поскольку тивность. Это также обеспечивает дальнейшее сокращение никам: оптимизация организации, развитие качественного Спасибо за ваши активные усилия в течение всего года и за
пандемия продолжала распространяться. Результаты четвер- расходов. руководства и улучшение наших показателей в области работу в очень сложных условиях. У нас есть все необходи-
того квартала пострадали меньше, так как мы увидели явное разнообразия. мое, чтобы сделать 2021 год успешным для Elkem, не забывая
восстановление в Китае и улучшение ситуации в Европе и Silicones - крупнейшее подразделение компании Elkem, пре- при этом о необычайно высокой неопределенности во внеш-
Америке. К концу года сохранялся хороший спрос на решения Elkem также активно использует свои компетенции для разви-
тендующее на лидерство в большинстве сегментов по всему ней среде.
Elkem - даже несмотря на продолжающаяся высокую неопре- тия новых устойчивых направлений бизнеса. Elkem будет ис-
миру. Оно сосредоточено на прибыльном росте и увеличении
деленность. кать партнеров для этих проектов, но они должны наглядно
доли рынка, особенно в Китае, а также на повышении базо-
продемонстрировать Elkem способность стимулировать раз-
Однако компания Elkem сделала гораздо больше, чем просто вой рентабельности за счет операционного превосходства и
витие новых "зеленых" технологий:
справилась с кризисом, вызванным коронавирусом. В 2020 году специализации. В апреле Elkem завершила приобретение
мы заложили прочный фундамент для прибыльного роста и Polysil, ведущего китайского производителя силиконовых эла-
увеличения доли рынка в последующие годы. стомеров и смол. В декабре мы завершили строительство и
открыли новый производственный цех в Шанхае, Китай, пред-
назначенный для производства специализированных силико- Michael Koenig,
CEO, Elkem ASA
нов для гибридных и электрических автомобилей.
6 LETTER FROM THE CEO ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 LETTER FROM THE CEO 7
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Вызовы и возможности - цепочка поставок Elkem

Для компании Elkem повышенное внимание к устойчивому Финансовый сектор вместе с другими заинтересованными
Введение: развитию общества - это отличная возможность. Продук-

ция компании Elkem является важнейшим исходным мате-
сторонами уделяет все больше внимания финансовым рис-
кам, связанным с недостаточными инициативами в области
риалом для огромного количества изделий, необходимых устойчивого развития, и ожидания в отношении раскрытия не-
Устойчивое развитие Elkem в 2020

для устойчивых решений, таких как возобновляемые ис-
финансовой информации растут. Ускоряющаяся потребность
точники энергии, хранение энергии, решения для мобиль-
в понимании рисков, возможностей и вызовов по нефинансо-
ности, улучшение инфраструктуры, цифровизация и здра-
воохранение. Поэтому растущий спрос на низкоуглерод- вой отчетности повлияла на работу компании Elkem в области
2020 год ознаменовался для компании Elkem несколькими важными вехами, но также имела место ные технологии и продукты, такие как солнечные батареи, устойчивого развития и отчетность в 2020 году.Факторы, свя-
чрезвычайная ситуация, связанная с глобальной пандемией, которая затронула все слои общества. аккумуляторы и электромобили, повысит спрос на некото- занные с экологией, социальной сферой и управлением (ESG),
рые сегменты продукции Elkem в области силиконов, приобретают все большее значение для принятия инвестици-
Долгосрочные последствия COVID-19 еще не до конца понятны, но амбиции компании Elkem в отно- кремния и ферросплавов. онных решений и стали важной аббревиатурой в 2020 году. От-
шении устойчивого развития не изменились. Теперь у нас есть 10 лет, чтобы выполнить обязатель- Вместе с этим мы активно работаем над снижением
чет Elkem по ESG подчеркивает усилия компании по координа-
воздействия на окружающую среду наших собственных
ства, предусмотренные Повесткой на 2030 год Целей устойчивого развития Организации ции, управлению и отчетности по ESG. Отчет подчеркивает то,
производственных процессов, чтобы создавать материа- как устойчивое развитие интегрировано в компании, и подго-
Объединенных Наций.
лы, необходимые для обеспечения устойчивого будущего. товлен по разделам "Экология", "Социум" и "Управление", а
также в соответствии с нашим анализом существенности.
• Потенциал для дальнейшего повы-

шения энергоэффективности и реку-
И
СТОРОНЫ
• 83% электроэнергии из возобновляе- • Углеродный след в цепочке ценно-
перации энергии
мых источников сти в сравнении с конкурентами
• Разработка продуктов, например, не
•Увеличение доли биоуглеродных и • Продукты, позволяющие снизить
ВОЗМОЖНОСТИ
содержащие полициклические арома-
биохимические продуктов выбросы парниковых газов
тические углеводороды (ПАУ)
• Повышение долговечности конеч-
• Потенциальная выгода от более • Хранение и утилизация задержанно-
ной продукции
СИЛЬНЫЕ
строгих экологических и социальных го углекислого газа
стандартов • Замена пластмасс и сырья на
• Эффективное обеспечение эколо- основе нефти материалы
гичности продукции
• Повышение безопасности за счет
автоматизации
ценности
МИССИЯ Elkem придерживается принципов "Норвежского кодекса прак-
Цепочка
Миссия компании Elkem заключается в том, чтобы внести тики корпоративного управления", изданного Норвежским сове-
вклад в устойчивое будущее путем предоставления передо- том по корпоративному управлению ("NUES" или "Кодекс"). Цель
вых решений в области кремния, силиконов и углерода, повы- данного Кодекса заключается в том, чтобы компании, котирующи- Сырье Производство и процессы Рынки и финальный продукт
шая ценность для заинтересованных сторон по всему миру. еся на регулируемых рынках Норвегии, практиковали корпоратив-
Мы верим, что компании, которые действуют ответственно и ное управление, которое регулирует распределение ролей между • Углеродный материал (уголь), необ- • Выбросы и цены CO2 • Постоянное ужесточение экологиче-
создают стоимость, обеспечивая устойчивый экономический акционерами, советом директоров и исполнительным руко- ходимый для плавильных процессов ских норм
• Выбросы NOx, SO2, пыли и ПАУ
ВЫЗОВЫ И
СТОРОНЫ
рост при ограниченном воздействии на окружающую среду, водством более полно, чем того требует законодательство. • Имеется ограниченное количество • Циклические вещества (D4, D5 и D6),
СЛАБЫЕ
• Управление водными ресурсами
будут успешны в долгосрочной перспективе. Компания Elkem является участником Глобальной хартии устойчивого биоуглерода включенные в список особо опасных
• Опасные отходы и их захоронение
ответственного подхода, глобальной инициативы химиче- • Использование земли для добычи веществ
• Химическая безопасность
ОБЯЗАТЕЛЬСТВА ской промышленности, направленной на постоянное улуч- кварца и производство биоуглерода • Химическая репутация
Компания Elkem стремится вести бизнес в соответствии с Це- шение показателей в области охраны окружающей среды,
лями устойчивого развития ООН (ЦУР) и амбициями Париж- здоровья, безопасности и охраны труда. Членство подразу-
мевает обязательство безопасного обращения с химически- • Комплаенс • Нормативно-правовые и политические изменения
ского соглашения. Являясь членом Глобального договора
НЫЕ ДЛЯ ЦЕПОЧ-

ТЕМЫ, АКТУАЛЬ-
• Этические стандарты ведения бизнеса • Цифровизация
КИ ЦЕННОСТИ
ми веществами на протяжении всего их жизненного цикла.
ООН, компания Elkem стремится обеспечить соответствие на-
Elkem стремится соблюдать международные нормативные • Права Человека • Инновации, НИОКР
шей деятельности десяти принципам Глобального договора
требования и предоставляет паспорта безопасности (SDS) • Конкурентная позиция и финансовая устойчивость
ООН. Elkem обязуется следовать Руководящим принципам Ор-
для всей своей продукции в соответствии с Согласованной на
ганизации Объединенных Наций по вопросам бизнеса и прав
глобальном уровне системой ООН по классификации и марки-
человека и предоставила обновленное заявление по Закону о
ровке химических веществ (GHS) или ее национальными вер-
современном рабстве Великобритании.
сиями.
• Смягчение последствий
• Управление водными ресурсами и отходами
АЛЬНЫЕ
МАТЕРИ
изменения климата
ТЕМЫ
• Трудовое право
• Экологический мене-
• Руководство и управление рисками
джмент
•Здоровье и безопасность
8 INTRODUCTION ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 INTRODUCTION 9
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ВЗАИМОДЕЙСТВИЕ С ЗАИНТЕРЕСОВАННЫМИ
СТОРОНАМИ
ДОСТИЖЕНИЯ И ОТЧЕТНОСТЬ В ОБЛАСТИ Наш диалог с заинтересованными сторонами основан на
Цели Сроки Статус
уважении к людям, обществу и окружающей среде. Поддер-
УСТОЙЧИВОГО РАЗВИТИЯ
Интеграция Целей устой- 2019-2020 Достигнуто. В 2020 жание контактов с различными заинтересованными сторона-
В 2020 году Elkem во второй раз получила "золотой" рейтинг от
чивого развития (ЦУР) в Elkem отчитывает- ми помогает Elkem понять роль, которую мы играем в мест-
Ecovadis, рейтинг устойчивости бизнеса, что позволило компа-
отчет и рассмотрение воз- ся по трем ЦУР и ных сообществах и обществе в целом, а также построить
нии войти в 5% лучших из более чем 65 000 компаний, получив-
можность отчетности по подцелям. долгосрочное взаимное доверие. На основании внутренних
ших рейтинг. В 2020 году Elkem получила свой первый рейтинг
опросов основные заинтересованные стороны Elkem были
"А" от CDP, который признал усилия компании по обеспечению отдельным целям.
определены в соответствии с приведенной ниже схемой:
прозрачности и действиям по смягчению последствий измене-
ния климата. В 2021 году Elkem решила включить отчетность Рассмотреть возможность 2020 Достигнуто. Elkem
по водной безопасности CDP Water в дополнение к отчетности предоставления отчетности отчиталась по
по CDP Climate. в рамках проекта по раскры- "CDP Climate" в
Чтобы лучше понять последствия изменения климата, тию информации об угле-
2020 - получила
компания Elkem решила в 2020 году интегрировать механизм родных выбросах (CDP).
место в списке "А".
Целевой группы по раскрытию информации, связанной с Гражданское Политическая
климатом (TCFD), в нашу систему управления рисками и, в Рассмотреть возможность 2020-2021 TCFD одобрен как страте- общество власть
частности, теми, что связаны с климатом. Этот механизм бу- отчетности по климатиче- гический инструмент для
дет внедрен в 2021 году. ским рискам в соответ- управления климатиче-
ствии с Целевой группой
В 2019 году компания Elkem начала путь по улучшению ин- скими рисками. Незави-
по раскрытию финансовой симый отчет будет под-
формирования и отчетности в области устойчивого развития. информации, связанной с
готовлен в 2021 году.
Помимо достижения трех определенных целей отчетности, климатом (TCFD).
Инвесторы и Регулирующие
были предприняты усилия по улучшению нашей общей про- акционеры органы
зрачности и отчетности. Отчет ESG был подготовлен в соот-
ветствии со стандартами GRI: Core option.
Ценности компании Elkem Сотрудники и

профсоюзы
Клиенты и
поставщики
формируют наше деловое

В таблице на странице 12 вы найдете примеры типичных
поведение диалогов с заинтересованными сторонами и то, какие во-
Наши преданные своему делу со- просы наши заинтересованные стороны считают наибо-
трудники основывают свою работу лее важными. Таблица составлена на основе данных, по-
на вовлечении, уважении, точности лученных в ходе ежегодного внутреннего опроса заин-
тересованных сторон, который проводится среди руково-
и постоянном улучшении.
дителей предприятий и линейных менеджеров.
Вовлеченность обеспечивает
приверженность и близость людей к
принятию решений, влияющих на их
работу. Компания Elkem по-
Уважение значит быть искренним, открытым и лучила рейтинг "А"
честным, а также ценить разнообразие.
от CDP в 2020 году
Точность выражается в нашей работе по разра-
ботке и соблюдению стандартов передовой прак- за действия по за-
тики, этичного ведения бизнеса, безопасного и ста- щите климата и
бильного производства. прозрачность.
Постоянное улучшение означает всегда искать
потенциал для улучшения во всех подразделени- Подробнее
ях организации, чтобы уменьшить наш углерод- на elkem.no
ный след и увеличить наше положительное влия-
ние на общество вокруг нас.
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Оценка существенности Подробный обзор заинтересованных сторон компании Elkem,

В 2020 году компания Elkem провела обновленный комплекс- тип диалога и вопросы, представляющие интерес, приведены
ТИПИЧНЫЙ ДИАЛОГ И ТЕМЫ, ПРЕДСТАВЛЯЮЩИЕ ИНТЕРЕС в таблице слева.
ный анализ внешних и внутренних заинтересованных сторон,
на которых либо влияет деятельность компании, либо кото- Результаты диалога с заинтересованными сторонами дали
Заинт. стор. Тип диалога Основные темы, представляющие интерес
рые различными способами оказывают влияние на компанию. Elkem ценное понимание того, на какие экономические, соци-
Сотрудники • Регулярные собрания - удаленно и на месте • Надлежащие и безопасные условия труда альные, управленческие и экологические темы мы влияем в
• Надлежащая компетентность в области ОТОСБ Предыдущий анализ был проведен в 2018 году.
• Диалог по электронной почте/телефону своей деятельности, которые должны быть приоритетными с
• Личное и профессиональное развитие/надлежащие компетенции Процесс взаимодействия с заинтересованными сторонами
• Сменно-встречные совещания учетом важности для заинтересованных сторон.
• Ежегодные собрания (дни ОТОСБ) • Удовлетворенность работой/вовлеченность и оценка существенности проводились в соответствии со струк-
• Справедливая заработная плата, льготы, социальное обеспечение турой Глобальной инициативы по отчетности (GRI) и осуще- Выявленные существенные темы отражают влияние дея-
• Совместные собрания для всех (для коллектива)
• Исследование удовлетворенности сотрудников • Баланс между работой и личной жизнью ствлялись сторонними консультантами для обеспечения тельности компании Elkem, важность для заинтересованных
• Лекции о личном развитии, тренинги • Подбор кадров/ текучесть сторон и развитие нашей стратегии ESG.
объективности анализа. Оценка включала четыре этапа:
• День семьи/посещение завода • Система поддержки (ОК) Комплаенс не представлен в обновленной матрице суще-
• Проект-менеджмент • Прозрачная, основанная на доверии и безопасная коммуникация и информация
ственности, поскольку комплаенс интегрирован во все сфе-
• Стабильная/безопасная работа 1. Выявление проблем путем проведения обширного
• Культурные перемены и различия ры деятельности компании Elkem и будет постоянно иметь
Бенчмаркинга аналогов компании Elkem.
для нее существенное значение. Соответствие норматив-
2. Определение приоритетности проблем на основе коли- ным требованиям является фундаментальной основой для
Команда ко- • Ежемесячные/регулярные собрания • Эффективность и улучшение
проративного • Семинары • Контролируемый процесс чественных и качественных показателей, диалог с заин- всей деятельности компании Elkem и относится ко всем су-
менеджмента • Телефон/электронный диалог • Показатели безопасности тересованными сторонами. щественным темам, рассматриваемым в отчете. Комплаенс
• Внутренние совещания менеджмента • Выполнять проекты в срок, с соблюдением качества и бюджета 3. Внутреннее взаимодействие с заинтересованными сто- рассматривается в главе "Управление" на странице 40 и
• Отчетность и обзор завода • Эффективность затрат и рентабельность
•
ронами для рассмотрения, уточнения и утверждения су- проходит красной нитью по всему отчету.
• Организационный комитет Программы постоянного улучшения
• Стратегические сессии • Организационные вызовы и развитие щественных тем. Мир устойчивого развития меняется, и список материаль-
• Состязательность 4. Раскрытие результатов, целей и материальных тем во ных тем от заинтересованных сторон компании Elkem также
• Достижение стратегических целей внешней коммуникации. изменился с 2018 года. Основные изменения по сравнению с
• Инновации, новый бизнес и разработка новых продуктов оценкой 2018 года заключаются в том, что смягчение послед-
Заказчики и • Регулярные собрания - удаленно и на месте • Качество и стабильность продукции • Оценка включала собеседования с нашими внешними и вну- ствий изменения климата и трудовые права получили наивыс-
поставщики • Диалог по электронной почте/телефону Надежность, конфиденциальность шую приоритетность. Борьба с коррупцией и антиконкурент-
тренними заинтересованными сторонами, после чего было
• Вебинары/Семинары • Обслуживание ное поведение по-прежнему считаются важными темами для
• Конференции/Выставки • Поставка в срок / прогнозируемость проведено исследование для количественной оценки ре-
Elkem, но они больше не рассматриваются как наиболее суще-
• Визиты на завода и визиты заказчиков • Хорошая цена / своевременная оплата зультатов. В анализ были включены следующие заинтересо- ственные темы.
• Аудиты • Эффективная администрация ванные стороны: инвесторы, члены совета директоров, со- Новая матрица существенности была оценена Руководя-
• Оценка качества • Обмен знаниями
• Технические совещание • Доверие и соблюдение норм трудники, местные и национальные органы власти, банки, щим комитетом ESG и утверждена Советом директоров компа-
• Опрос клиентов • Развитая устойчивость местные сообщества и организации, профсоюзы и заказчики., нии Elkem.
• Отчетность • Финансовые показатели
• Инновации
• Соблюдение нормативных требований
ELKEM – МАТРИЦА СУЩЕСТВЕННОСТИ
• Деловая этика
Гра- • Общественные/социальные мероприятия • Экологические вопросы Очень высокое Устойчивая инновация продукции Экологический менеджмент
жданское • Спонсорская поддержка • Политическая обстановка Борьба с конкуренцией Смягчение последствий изменения климата
Приоритет заинтересованных сторон

общество и • Неформальный диалог • Безопасность на предприятии Борьба с коррупцией Здоровье и безопасность
• Дни ОТОСБ • План реагирования на чрезвычайные ситуации Экономика зам-
местное со- Права человека Управление водными ресурсами и отходами
кнутого цикла
общество • Долгосрочное присутствие Отношения с заинтересованными Трудовые права
сторонами Руководство и управление рисками
Местные, на- • Регулярные собрания • План развития и регулирования
циональные и • Плановые и внеплановые проверки/аудиты • Соблюдение нормативных требований и прозрачность
международ- • Места проведения конференций и нефор- • Безопасность/ОТОСБ Ответственное снабжение Готовность к чрезвычайным ситуациям
ные органы мальных встреч • Экологический менеджмент и управление ресурсами Ответственная цепочка стоимости Эффективность конечного продукта
власти - поли- • Отчетность • Устойчивое развитие / КСО
Обучение и развитие Рациональное использование продукции
тические и за- • Активность в сообществе и долгосрочное присутствие
Многообразие и равенство Химическая безопасность
конодатель- • Безопасный и ответственный работодатель
ные • Инвестиции в будущее
Национальные интересы и лоббирова-
Профсоюзы • Ежемесячные собрания • Условия труда ние биоразнообразия Создание и сохранение рабочих
• Трудовой комитет • Переговоры по контрактам/тарифам Высокое Безопасность и конфиденциальность мест
• Экологические вопросы данных
• Двусторонняя связь Влияние бизнеса Elkem на ESG
Инвесторы и • Регулярные собрания • Создание ценности
Высокое Очень высокое
акционеры • Конференции/Вебинары • Производственные показатели
• Презентации и отчеты • Показатели устойчивости / ESG
• Финансовые возможности 1) Экологический менеджмент, включая энергетический менеджмент.
• Стратегическое развитие
2) Смягчение последствий изменения климата включая качество воздуха и выбросы парниковых газов.
• Развитие бизнеса в будущем
3) Охрана здоровья и безопасность, включая ОТОСБ сотрудников и ОТОСБ цепочки поставок.
4) Управление водными ресурсами, включая управление разливами.
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Elkem’s contribution to the

UN’s 2030 Agenda
The UN Sustainable Development Goals (SDGs) were established The material topics for Elkem are:
in 2015 by all the United Nations member states with the inten-
tion of working towards a more sustainable and equal world for • Occupational Health and Safety,
all by 2030. including both employee and supply
chain EHS
The 2030 Agenda acknowledges that the 17 goals cannot be • Labour rights
reached without the active support of businesses around the Subgoal 8.7: Subgoal 8.8: Subgoal 12.4: Subgoal 12.5: Subgoal 13.1:
world. It calls on companies to use innovation, technology, and
Take immediate and Protect labour rights By 2020, achieve envi- By 2030, substantially Strengthen resilience and adaptive capacity to
creativity to address developmental challenges and opportuni- effective measures to and promote safe ronmentally sound reduce waste gen- climate related hazards and natural disasters in
ties that the companies can impact. Elkem supports the 2030 • Water management
secure the prohibition and secure working management of chem- eration through pre- all countries.
Agenda, as a signatory to the UN Global Compact. • Waste management and elimination of environments for all icals and all wastes vention, reduction,
the worst forms of workers. throughout their life recycling and reuse. Elkems policy:
• Governance
child labour, eradicate cycle in accordance
In 2020, Elkem updated the materiality assessment for the com- forced labour, and with agreed interna- Elkem’s ambition is to reduce the company’s fossil
by 2025 end child tional frameworks and
pany. In that process, the materiality was linked to how we are labour in all its forms significantly reduce
CO₂ footprint, by increasing the use of renewable
carbon sources and development of innovative
impacted and can impact the UN SDGs. Although we understand including recruitment their release to air, production processes.
that all goals are interlinked and work to promote all 17 UN SDGs, and use of child water and soil to min-
• Climate change mitigation, including soldiers. imise their adverse Endorses the intention of the Paris agreement of
three SDGs has been identified as the most material to Elkem greenhouse gas (GHG) emissions and impacts on human limiting global warming to 1.5°C degrees.
and the ones in which we can make a contribution. For the first air quality Elkems position: Elkems position: health and the envi-
ronment. 2020 report:
time, Elkem reports on progress regarding the UN SDGs in 2020. • Environmental management including
Elkem operates and A safe workplace with
More information about Elkem and SDGs at Elkem’s website. energy efficiency have suppliers in zero harm is always Ranked at CDPs A List
• Risk management countries where there Elkem’s first priority.
Elkems policy: Elkems policy: Scope 1 emissions from renewable, biogenic
are risks of child and The key responsibility sources: 20%
forced labour. There to Elkem is a
Elimination of waste is Elkem’s goal is to con- Energy recovery rate: 11%
is a zero tolerance professional and safe
one of key strategies sider all raw material
for use of child or workplace for all that For more information, see our climate change
for successful opera- and process waste as
forced labour at our work at our sites. mitigation chapter, on page 18.
tions. Waste reduction by-products that can
sites and we require
Respect for Human is mentioned specif- be reused or sold.
that our suppliers and
Rights is key to ically in the general
contractors uphold Any residual waste
protect labour rights. policy.
same standard. left after other efforts
Elkem is committed
A strong environmen- is disposed in accord-
to conduct business
tal management of ance with local regu-
according to the UN
chemical safety, emis- lations.
Guiding Principles on
sions to air and water
Business and Human
and focusing on min-
Rights
imising the environ-
More on policies mental footprint is a
and management se key priority to Elkem.
page 29.
2020 report: 2020 report:
Total waste generated: Total waste diverted

2020 report: 2020 report:
356,156 tonnes from disposal:
237,645 tonnes
No reported incidents One reported high Reduced NOx emis-
of child labour or severity injury. sions by 1.6% globally More information on
forced labour in and 7.7% in Norway waste management,
Injury rate: 2.3
Elkem’s production or on page 21.
Reduce SO2 emissions
in supply chain. Updated Human
by 5.5%
Rights policy in 2020
No significant spills of
Employees covered
D4/D5
by collective
bargaining For information and
agreements: 64% status on other emis-
sions, see page 27.
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ESG:
Environmental
As a fully integrated value chain producing silicon and silicones, Elkem acknowledges the environmen-
tal footprint of the company, at the same time as the products we produce are essential for companies
efforts to reduce their environmental footprint. Our products also contribute to reduce emissions for
society as a whole through the products they end up in. Environmental issues are therefore defined as
material topics for Elkem with special focus on climate change, emissions, energy, waste and water.
20%
of scope emissions in
5.5%SO2 emissions
3
Reached target of
711GWh energy
Norway comes from renew- reduction from 2019 1,000 tonnes NOx recovered
able, biogenic sources. emission reduction
The process of converting quartz to silicon is a high tempera- impact mapping, risk assessment, performance and reporting
ture smelting process that consumes vast amounts of energy. at their sites. All sites have dedicated EHS managers to lead and
The production process itself uses carbon sources like fossil coal, coordinate EHS efforts and large production sites with major
charcoal, and wood chips as a reductant in the chemical conver- environmental issues also have dedicated Environmental man-
sion giving emissions of CO₂, NOx, SO₂ and dust. The emission agers. Corporate and divisional resources are available to guide
of CO2 is inherent to the process and cannot be fully removed and help site managers and site EHS managers with their envi- either monthly or quarterly at divisional and corporate level ■ Development of new production technology.
with today’s technology. ronmental efforts, and to audit sites routinely on their environ- depending on the criticality of the parameter. ■ Using efficient air and water treatment systems when
Processing further to silicones involves substantial quanti- mental performance and compliance. Environmental issues are necessary.
ties of water effluent that is treated before discharge to remove also covered in Elkem’s corporate EHS audit system that audits ENVIRONMENTAL STRATEGY
residues from the process like COD (Chemical Oxygen Deple- production sites every other year in addition to special environ- Elkem’s environmental strategy focuses on the following points: The overall environmental strategy is followed up at plant and
tion) substances. mental audits that are done when needed. ■ Full compliance with all applicable environmental divisional level with detailed road maps showing how targets can
All environmental impacts are identified and documented Because of the potential environmental impacts, all appli- regulations wherever Elkem operates worldwide. be met, and a comprehensive list of KPIs reported to corporate
with measurements or calculations showing performance com- cable Elkem sites are required to have an appropriate envi- ■ Creating and sustaining a strong environmental reputation management. The KPIs are found in the following subchapters.
pared to permits given by government authorities where Elkem ronmental management system. For most of our production wherever Elkem operates worldwide.
operates, and/or improvement targets set by Elkem. facilities ISO 14001 certification is also required as a third-party ■ Ensuring sustainable production and emissions/discharge ENVIRONMENTAL DEVIATIONS
verification of the management system. At the end of 2020, control based on our knowledge of the environmental There were no significant spills, defined as those that have a
ENVIRONMENTAL POLICY only a small number of sites had not completed the certifica- effects of our production. This also applies in countries lasting environmental impact, or significant environmental inci-
Elkem’s environmental policy is integrated in the companies’ tion. An updated certification list of ISO 14001 is available online where applicable environmental regulation is weak or non- dents in 2020.
General policy. Key points are Elkem’s commitment to give envi- at www.elkem.com. In addition to overall environment man- existent. A total of 77 environmental deviations were reported globally
ronment, health and safety (EHS) first priority and to strive to agement systems, applicable sites are also required to have ■ Strengthening our position in the development of in Elkem for 2020. Most of these were small, brief permit devia-
be an environmentally conscious company. Elkem’s EHS efforts specific energy management systems that comply with the technology and materials that enable reduction in tions from Elkem’s upstream and intermediate silicone produc-
are based on a zero-harm philosophy. In terms of environmen- requirements in ISO 50001. greenhouse gas emissions throughout the world. tion in France.
tal issues this means running operations with resource-efficient Environmental efforts focus both on targeted improvements Because of its location close to one of China’s largest fresh-
processes and in this way minimising negative environmental to reduce Elkem’s environmental footprint as well as compliance Enablers to meet these strategic targets include: water bodies, Elkem Xinghuo is subject to very strict require-
impacts throughout the value chain. with local regulations and permits. Environmental deviations ■ Increasing material and energy efficiency including energy ments for discharge to water and has been under close follow-up
are reported, investigated and closely followed up at plant level recovery. from the authorities since 2019. In 2020 water treatment facilities
ENVIRONMENTAL MANAGEMENT in a timely manner, and reported minimally monthly to division ■ Substitution of raw materials. issues were solved, and the plant was able to meet all require-
In Elkem, Environmental management is defined as a line respon- and corporate. High risk environmental deviations are reported ■ Waste reduction by reduced waste generation and ments without production reduction.
sibility meaning site managers are accountable for environmental within 24 hours. Key environmental parameters are reported recycling or reuse.
16 ENVIRONMENTAL ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 ENVIRONMENTAL 17
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Climate change mitigation GHG EMISSIONS duction mixes from the International Energy Agency’s statistics
Scope 1: that has been developed for 2020.
Elkem’s ambition is to reduce the company’s fossil CO2 footprint, During the past few years Elkem has expanded our produc- The total direct CO2 emissions for Elkem was 2.92 million tonnes This location-based method is based on statistical emissions
by increasing the use of renewable carbon sources and develop- tion and therefore also seen an increase in the group's total in 2020. 2.3 million tonnes of the scope 1 emissions were from information and electricity output aggregated and averaged
ment of innovative production processes. The company endorses CO₂ emissions. Since 2017, Elkem has increased production fossil sources, up from 2.15 million tonnes in 2019 due to higher within a defined geographic boundary and during a defined time
the intention of the Paris agreement of limiting global warming with seven smelting furnaces: two in Norway, four in China production volumes. The renewable share of CO2 emissions, from period. Within this boundary, the different energy producers uti-
to 1.5 degrees. Climate change mitigation and GHG emissions and one in Paraguay. All of these expansions, except from the biogenic sources, was 547,000 tonnes, up from 448,000 tonnes lise a mix of energy resources, where the use of fossil fuels (coal,
have been identified as material topics to Elkem and includes furnace in Paraguay comes from acquiring existing capacity. in 2019, an increase of 22% and 19% of total group emissions. oil, and gas) result in direct GHG-emissions. These emissions are
our processes and activites in scope 1-3 and renewable share. The furnace in Paraguay runs solely on hydroelectric power More than 64% (1.88 million tonnes) of the total direct fossil reflected in the location-based emission factor.
and uses only bio-carbon as a reductant, making its opera- CO₂-emissions from our production come from the smelting pro-
Carbon dioxide: tions close to carbon neutral. The increase in CO₂ is also con- cess, where carbon (C) reacts with oxygen in quartz to produce Scope 3:
nected to the acquisition of upstream silicone activities in silicon/ferrosilicon. As this cannot be measured directly, emis- In 2020, we started mapping our scope 3 emissions. This work
Target Status for 2020 China, which uses a coal fired boiler to produce steam used sions are calculated based on third party certificates of carbon will continue in 2021, and we aim to report on our most material
in the production process. content (TC) in raw materials (coke and coal). CO₂ numbers from scope 3 emissions from 2021.
20% replacement Increase in overall CO2 emissions from Strategic means to reduce fossil CO2 from silicon alloy pro- other sources, including heating and fuel, are based on standard
of direct fossil 2019 due to higher production volumes, duction has three pillars: Increasing material and energy effi- conversion factors in accordance with the EU Emissions Trad- BIOCARBON SHARE
CO2 emissions but a decrease in carbon intensity. ciency, replacing fossil carbon with bio-carbon and developing ing Systems (EU ETS) Guidelines. Elkem reports the company’s A high share of biocarbon is important to reduce the impact
for Norwegian 20% replacement of direct fossil CO2 new carbon neutral smelting technology illustrated below. emissions according to the GHG Protocol. our processes has on climate change. As CO₂ is inherent to
smelters by 2021, emissions for Norwegian smelters by use
40% by 2030
PwC has undertaken a limited assurance engagement of the the smelting process with current technology, total emissions
of biocarbon.
Scope 1 and 2 GHG emissions for the period 1 January 2020 - 31 will vary year on year based on market conditions and capac-
December 2020. The report is available on page 64. ity utilisation. One of Elkem's main CO2 strategies is to replace
Full Mapping of scope 3/indirect emissions fossil carbon with biocarbon in our smelting operations. The
understanding started in 2020. A comprehensive report goal is to increase the share of bio carbon used at our Norwe-
of indirect CO2 on scope 3 will be disclosed in the CDP Metric 2018 2019 2020
gian smelters to 20% by 2021, and by 40% by 2030. The total
emissions report by summer 2021.
CO2 emissions from Tonnes 2.54 2.15 2.29 direct CO2 emissions from our six Norwegian plants make up
fossil sources, millions around 50% of our total direct CO2 emissions. Each plant has
developed a road map to reach the goal and reports to corpo-
Total CO2 equivalents, Tonnes 2.8 2.60 2.38
rate level on progress. To reach our target of increased share of
incl. methan and
diesel, millions
biocarbon, Elkem is actively engaged in new technology devel-
opment and industrial partnerships. The 2020 announcement
CO2 emissions from Tonnes 313 448 547 of an industial pilot plant for biocarbon production in Canada
renewable sources is an example of this.
(biogenic), thousand In 2020 Elkem reached the biocarbon goal of 20% in Nor-
Total direct CO2 Tonnes 2.85 2.6 2.92 way, and the group share rose to 19%. Elkem continues to work
emissions, millions closely with partners to develop efficient, sustainable, and more
environmentally friendly production of bio-carbon for silicon
Percent of Percent 20.7% 18% 20%
and ferrosilicon production. It is a pre-requisite for Elkem that
renewable carbon
the renewable sources comply with our strict environmental and
Increase material and Reduce fossil Technology development sources in our
social requirements.
energy efficiency CO2 emissions of Si production Norwegian
smelters
LCAS
Percent of renewable Percent 11% 17.2% 19% Life Cycle Assessments (LCAs) are being performed in order to
• Stabilise and increase the • Increased biocarbon portion of • Develop furnace technology for carbon sources for the quantify the environmental impact of our products. LCAs sup-
furnace’s silicon yield. total CO2 emissions in Norwegian silicon alloy production with no group
smelters: >20% in 2021 and >40% (direct) CO2 emissions to the
port us in the work of reducing our environmental footprint even
• Reduce silicon losses from tap
in 2030. atmosphere. further through providing an accurate overview of the environ-
hole to final product.
Scope 2 mental impact of our operations. Furthermore, these assess-
• Install energy recovery systems • Establish concepts and industrial • Facilitate for future CO2 capture
ments increase the product transparency so that we can assist
at furnace off gas. production of biocarbon, and storage. Thousand tonnes 2018 2019 2020
our customers in their sustainability transformation.
tailormade as FeSi/Si reductants,
CO2 equivalents 874 872 916 In 2020, Elkem concluded the assessments of the products
enabling use of waste wood and
produced at several large plants. These assessments have been
ensuring biocarbon produced
with a lower CO2 footprint. Scope 2 includes indirect emissions related to purchased elec- conducted from cradle to gate, i.e. covering the manufacturing
tricity (incl. steam) where Elkem has operations. The electricity process until the products reach our factories’ gates, with the
emission factors used in the calculation are supplied by consul- assistance of a third party. Elkem will perform LCAs on mayor
Elkem’s strategic means to reduce fossil CO2 from silicon alloy production. tancy Cemasys and are based on national gross electricity pro- product groups in 2021.
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Energy management Waste management

Energy efficiency and sustainable sourcing of energy is of In addition to electrical energy, Elkem also consumes approx- Waste management has been identified as a material topic to ucts are delivered to customers in big-bags or on pallets giving
utmost importance to secure energy supply while at the same imately 1.4 TWh of other types of energy for internal vehicle Elkem and includes activities of reuse, recycle, transport, and a potential source of waste to customers. Packaging materials
time reducing Elkem's global greenhouse gas footprint. Energy operation and heating/cooling of facilities and processes. Most disposal of waste. hold a quality that can be re-used several times.
management has been identified as a material topic to Elkem, of this is fossil-based energy. Elimination of waste is one of Elkem’s key strategies for Hazard classification: Degraded raw materials and off-spec
and include energy consumption, energy recovery and energy successful operations and is mentioned specifically in Elkem’s production can contain binders consisting of CTPHT which is
efficiency. The regulatory framework, consisting of permits and ENERGY RECOVERY General Policy. This applies to all kinds of waste throughout listed as a substance of very high concern.
taxes as well as and support in the form of public grants substan- Elkem has a long-term strategy to increase energy recovery year the value chain with a high focus on efficient utilisation of all Silicon smelting consists of a high temperature chemical reac-
tiates the importance of increased focus on energy efficiency. on year as part of its climate programme. Several of Elkem’s resources, reduction of waste generation in the different pro- tion that transforms quartz and carbon (coal, charcoal, or wood
production processes generate surplus heat that traditionally duction, transportation, and storage processes and on reuse, chips) to silicon. In addition, alloying and crushing/sizing oper-
has been emitted through off-gas systems or cooling systems. recycling or sales of residual waste. All physical waste streams ations are used to tailor the product to customer needs in the
Target Status 2020
Much of this can be recovered to hot water for district heating, have a value, and it is our goal to realise that value and avoid electronics, foundry, and chemical industry. Major waste streams
Energy target Energy recovery 13 GWh increase. both internally on site and to other public facilities and industries disposal or destruction. Any residual waste left after other are degraded raw materials, slag from smelting, particles in off-
increase year on close to the plants, and to steam used in industrial processes efforts is disposed of in accordance with local regulations. gas emissions and fines generated during crushing and sizing
year. and/or to generate electricity 67% of process waste generated in 2020 was either reused operations.
The potential for energy recovery has been mapped at all or recycled. Elkem pioneered off-gas capture and utilisation during the
Energy recovery Some delay and smelters. Three of Elkem’s smelters already have large boilers early 1970s when it developed the bag filter technology neces-
project in Salten will go online in attached to their off-gas systems to recover substantial amounts sary to capture off-gas from smelting furnaces, and other nec-
on track for com- 2021. Target Status 2020
of energy to steam or electricity. A fourth facility, located at the essary technologies to turn it into a valuable product that is
pletion. Elkem Salten plant, Norway, is going online in early 2021 gener- used in hundreds of various products today. This represents over
Waste % reduction (to be defined) No current
ating another 270 GWh of electrical energy. Globally, a total of of process waste to landfill or target. 130,000 tonnes of waste to product every year.
711 GWh heat and electricity was recovered from our plants in destruction by 2025. The other waste streams have historically been sold as
Parts of Elkem’s value chain are highly energy intensive, with sili- 2020. This represents 11% of total energy consumption and an low-value off-grade or landfilled on site. In 2013 a dedicated
con, ferrosilicon and foundry alloys being produced in electric arc increase of 13 GWh from 2019. team of professionals renamed these to process products
furnaces. Elkem’s smelting furnaces consume around 5.6 TWh of PROCESS FLOWS AND MAJOR WASTE STREAMS: and started working together with plants and customers
electricity per year. Elkem was an industrial pioneer in the utili- ENERGY EFFICIENCY The value chain for Elkem’s products consists of four main types to increase their utilisation in Elkem’s own production or
sation of waste heat, with the first energy recovery system on a All Elkem sites are required to have an appropriate energy man- of production, each with specific potential waste streams: to increase their value for sales. As a result of this, Elkem
smelting furnace being installed already in the 1970s. Recovered agement system and an energy inventory showing the potential Quartz mining consists of either extraction by rock forma- already harvests more than 100,000 tonnes of process prod-
heat from smelting furnaces can be utilised as hot water for dis- to increase energy efficiency and thereby save energy. Exam- tion blasting and crushing, or by the digging of open pit mines ucts every year reducing cost at our plants and generating
trict heating, steam for other production processes and to gen- ples of this could be replacing old, inefficient electrical motors and washing/sifting/crushing stones. Main waste streams for new solutions for our customer.
erate new electricity. Electricity is sold back to the grid while hot with new motors with advanced digital energy control. In 2020, both processes are tailings from extraction/washing and off- In 2020 the process products group was further developed
water and steam are used both internally and externally to supply Elkem realised energy reduction efforts of 50.4 GWh in pro- spec (quality or size) from crushing and sizing. Most of the waste with a corporate function for global circular economy activi-
other companies and communities in the vicinity of each plant. jects related to infrastructure and utility consumption, of which streams are utilised to restore open pit mines or sold as biprod- ties working with the principles of designing out waste and
Through our EHS management policy, all units shall have envi- several initiatives received public support. The total investment ucts (sands and gravels to the construction industry) while some pollution, keeping products and materials in use and regener-
ronmental programmes covering energy and resource utilisa- was NOK 36.6 million. is landfilled in connection with the restoration of mining sites. ating natural systems. Hazardous waste from silicon smelting
tion. Well established groupwide audit and reporting systems Elkem is also involved in the development of alternative usages is limited and always delivered to certified third party suppli-
for EHS are also being expanded to include a higher level of for sands in agriculture and sports. ers for disposal.
Unit 2018 2019 2020
focus on environmental and energy issues. As all plants shall have Waste in connection with shipment: Is normally in bulk with Waste in connection with shipment: Except for charcoal, which
energy management systems, there is no corporate requirement Energy consumption GWh 6,228 6,010 6,400 no specific packaging. is supplied in big-bags and alloying materials, most raw mate-
of ISO 50001 certification. In 2020, four site are certified. With Hazard classification: As quarts is a naturally occurring min- rials are supplied in bulk reducing the need for packaging. Fin-
Energy recovery GWh 645 698 711
an increased attention to energy use, Elkem is in the process of eral there are no hazardous wastes in the process. ished products are also shipped either in bulk or in big-bags on
initiating ISO 50001 certification requirements for plants with Energy efficiency GWh 51 50.4 Carbon production consists of high temperature treatment pallets that can be reused.
high energy consumption. of anthracite and petroleum coke and the mixing these with Hazard classification: None of the major waste streams are
Energy efficiency NOK 165.6 36.6
investments million
binders to create different types of paste used for electrodes, defined as hazardous. Some alloying materials and chemicals
ENERGY CONSUMPTION fill materials and additives in the metallurgical smelting industry. used to process silicon after smelting are hazardous, but do not
Total gross electricity consumption in Elkem in 2020 was 6,400 Major waste streams are degraded raw materials and off -spec represent major waste streams.
GWh, up from 6,010 GWh in 2019. Most of this change is related production. Most of this can be safely reprocessed back into new Silicones formulation consists of many different chemical
to increased production because of the general global market batches of product. Remaining waste is delivered to approved processes and reactions that end in specialty products closely
situation for Elkem’s main products. About 83% of the total gross suppliers for hazardous waste treatment. New, non-hazard- tailored to customer needs. Different waste streams, both haz-
electricity consumption is based on renewable power produc- ous (green) binders are under development to reduce the use ardous and non-hazardous are generated throughout and
tion. Except for one smelter in China, all smelting furnaces in of Coal Tar Pitch High Temperature (CTPHT). between the different production processes.
Elkem run on renewable electrical energy. Waste in connection with shipment: The main raw materials
are received in bulk eliminating packaging, but finished prod-
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Major waste streams are:

■ Spent synthesis mass from main reactions and spent Waste in connection with shipment: Substantial amounts of pack-
solvents. aging are needed for raw materials, intermediates, and finished
■ Filtration cakes from various processes. products. Waste reduction efforts focus on reuse (IBCs and
■ Sludges from water treatment facilities. drums) and recycling.
■ Dirty packaging. Hazard classification: A large part of the waste generated dur-
ing the production processes is hazardous waste. All hazardous
Management and utilisation: waste is either treated on site (incineration, neutralisation, reuse) or
■ Reuse and recycling (spent mass neutralisation and sent to certified service providers for disposal of hazardous waste.
packaging). Generic waste streams: Elkem also has generic waste streams
■ Incineration with and without energy recovery. like used oil from vehicles and equipment, and packaging materi-
■ Landfilling (limited) in approved landfills. als from sourced goods. Each site has dedicated systems to sort
■ Ongoing efforts to reduce waste focus mainly on process waste on site and deliver this to approved service providers that
improvements to avoid scrap and reduce consumption of will recycle or re-use this whenever possible.
chemicals in the process, in addition to reuse of volatiles
and chemicals.
Waste numbers for 2020:

Type of waste and treatment Tonnes Comment:
Total waste generated 356,156
Non-hazardous waste to landfill 48,077 Includes both onsite and offsite landfills
Hazardous waste to landfill 6,031 Delivered to approved sites
Non-hazardous waste to destruction 2,399 Includes incineration both with and without energy recovery
Hazardous waste to destruction 62,004 Includes incineration both with and without energy recovery
Total waste directed to disposal: 118,511 33% of total waste generated
Biproduct to recycling/sale ex. microsilica 94,690 Raw materials, slag and production fines
Oils and chemicals to recycling 1,945
Scrap, packaging, etc. to recycling 4,687
Microsilica 136,322 Off-gas fume processed to sales product
Total waste diverted from disposal: 237,645 67% of total waste generated
Mining activities 308,263 Tailings and crushing residue (natural rock without chemical
processing) from mining returned to extraction site
In addition to raw material and production waste that goes to

disposal or is reused/recycled, our mining activities generated
308263 tonnes of tailings in 2020. All of this was returned to the
mining sites for further use in mining activities or as part of our
programme to refurbish mining site for return to farming or to
their natural state.
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Water management
As a fully integrated value chain for the production of silicon WATER MANAGEMENT STRATEGY
and silicones, Elkem has several interphases with water related The water management strategy is part of Elkem’s environmen-
impacts. Water is therefore defined as a material topic for proper tal strategy focuses, that includes ensuring sustainable produc-
management, priority area for improvements and full transpar- tion and emissions/discharge control based on our knowledge
ency towards our stakeholders. The challenges are different both of the environmental effects of our production. This also applies
through the value chain and across the actual regions. As a lead- in countries where applicable environmental regulation is weak
ing producer of large volumes of high-quality silicon based prod- or non-existent.
ucts, we acknowledge the importance of stewarding water as Enablers for meeting these strategic targets specifically to
a shared resource. Thus, we have implemented programmes to water related issues are:
monitor and reduce water withdrawal, consumption, and dis-
charge. To secure full transparency, Elkem has decided to dis- ■ Substitution of raw materials.
close all relevant information in accordance with CDP Water. The ■ Good housekeeping practices.
first report will be disclosed in 2021. ■ Development of new processes and production technology.
■ Advanced control programme including environmental
monitoring.
Target Status 2020
■ Wastewater treatment and reduction by recycling or reuse.
Water Full water discharge permit No significant spills to ■ Transparency (CDP Water from 2020).
compliance. water
Performance 2020
D4/D5 Zero spills of D4/D5. Zero spills of signifi There were no significant spills into water in 2020, defined as
cant environmental those that have a lasting environmental impact, or significant
impact environmental incidents. In 2020 water treatment facilities issues
were solved, and the plants were able to meet all requirements
without production reduction.
Most of our plants have dry high temperature smelting processes. Improvement plan 2021
Still, these processes are typically based on hydroelectric power ■ Strengthen transparency by adoption to CDP Water.
and water is used for cooling purposes. These sites are typically ■ Improve descriptions of water risk assessments, measures
located in areas with access to significant freshwater resources and control programmes.
and no water stress issues. The production of silicones in France ■ Improve reporting on run off water from plant areas.
and China are intricately linked to chemical reactions in aque- ■ Water treatment plants for several plants.
ous solutions, advanced water treatment plants and control pro-
grammes.
Metric 2020
At some of our sites, both water scarcity and potential impact
on river basins and ecosystems are recognised. All key envi- Total freshwater consumption Million m3 86.9
ronmental impacts are identified and documented with meas-
Process wastewater discharge Million m 3
16.5
urements showing performance compared to permits given by
government authorities where Elkem operates, and/or improve- COD flow Kg 262,700
ment targets set by Elkem. Key performance indicators on dis-
charges are reported on a regular basis. We are also conducting
surveys to identify potential pollution from old industrial sites
including abatement measures.
Water management is covered by Elkem’s environmental pol-
icy. Key points are Elkem’s commitment to give EHS first prior-
ity and to strive to be an environmentally conscious company.
See page 16-17 for more information about policy and manage-
ment procedures.
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Other emissions to air

Main emissions from Elkem are NOx, SO2 and dust. These emis- NOx emissions
sions mainly come from the carbon calcining process, the silicon/
Tonnes 2018 2019 2020
ferrosilicon smelting process and the upstream silicone-based
product process. Major emission variations are tied to changes Total 7,070 6,718 6,610
in production volume, but can also be affected by the quality of
Norway 5,462 4,824 4,450
raw materials, process control and investment in filter systems.
SO₂
Emission Target Status for 2020
Sulphur dioxide (SO2) is generated when using carbon materials in
SO2 % reduction (to be 5.5% reduction in SO2 the smelting process and when calcining coal and coke in the car-
defined) in direct emissions from 2019. bon products process. SO₂ emissions can have a significant neg-
SO2 from process ative effect on both plant and animal life, as well as human health.
gas by 2030 Emissions can be reduced through the use of carbon materials with
low sulphur content, or by off-gas treatment. Most of the reduction
NOx 1,000 tonnes Emission reduction of from 2019 is from investment in scrubber technology at Fiskaa Car-
reduction at 1.6% globally and 7.7% in bon and substitution of sulphur containing fossil coal by charcoal.
Norwegian smelters Norway. Reached target of
by 2025. reducing 1,000 tonnes. SO2 emissions
NOx emissions in Norway
2015: 5,854 Tonnes 2018 2019 2020
NOx emissions in Norway
Total 9,076 7,284 6,880
2020: 4,450
Dust 30% reduction by Increase of dust emission

DUST
2025, baseline 2015 from 1,200 tonnes to
Elkem allocates significant resources to combat dust. The long-
1,270 tonnes but shows an
overall reduction of 36% to
term ambition is to reduce process dust to levels where expo-
baseline year. sure is acceptable without the use of respiratory protection. In
the production of (ferro-)silicon, dust is both a health hazard and
a pollutant. Extremely high temperatures and ultrafine particles
For more in-depth understanding of how the emissions are rel- that disperse very quickly make it especially difficult to capture
evant to Elkem, see our website. dust generated in some of the production processes.
The goal is to reduce dust emissions by 30% by 2025, com-
NOx pared to 2015 emissions. The dust emissions saw a small increase
Nitrogen oxides (NOx) are gases that can be harmful to eco- in 2020, but still shows a reduction of 36% to the reference year
systems and vegetation, as well as health. Elkem continues its of 2015. Our overall efforts continue to secure our target of 30%
efforts to reduce emissions of NOx through equipment design reduction on an annual basis by 2025, despite the increased
and process control. The 2020 NOx emission numbers show that production volumes.
the reduction continues along with the target. Both global and
Norwegian NOx emissions see a reduction in 2020. In Norway, Dust emissions
the emission reduction was at 7.7% and we have already reached
Tonnes Baseline 2015 2018 2019 2020
our goal of reducing our emissions by 1,000 tonnes in Norway,
and will continue to seek further reduction with future targets Total 1,970 1,800 1,200 1,270
to be set.
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ESG:
Social
A safe and healthy working environment and promotion of labour rights are key priorities and
material to Elkem. Elkem focuses on and invests in training and competence development of
our employees, as well as promoting a culture of involvement, diversity and equality. Elkem
considers skilled and dedicated employees as the basis for success.
2.3
Total recordable injury rate
77%
sites without lost
25% female
64%
covered by collective
(per 1 mill. working hours) workday injuries share bargaining agreements
Elkem takes responsibility for all activities on Elkem property EHS POLICY
and is committed to ensuring that employees and contractors Elkem’s production processes and activities involve a number
working at Elkem sites can do so without harm. Elkem strongly of inherent hazards and emissions as operations include high
believe, and have shown at many plants, that our production temperature smelting (>2,000°C) and advanced processing of
can be conducted without any harm to our employees. The hazardous chemicals. To meet these challenges Elkem has devel-
corporate social responsibility of the organisation also comes oped comprehensive systems for risk management and pollu-
with a commitment to influence our suppliers and business tion control that are implemented at all Elkem sites worldwide.
partners.
Elkem’s general policy which covers all employees, states that We show our commitment by:
environment, health and safety (EHS) is always our first prior- ■ Having clearly defined responsibilities and accepting
ity. We run our operations based on a zero-harm philosophy. accountability for EHS at all levels of the organisation.
EHS management is the responsibility of the CEO and the board ■ Always prioritising individual health and safety when
oversees the health and safety situation. In addition to health choices have to be made.
and safety, labour rights along with the risk of human rights vio- ■ Setting ambitious goals and striving for continuous
lations in the supply chain, are Elkem’s key priorities. The Human improvement in EHS.
Rights policy and Code of conduct guides our labour rights com- ■ Using the same EHS systems, tools and methods, and
mitments. It is the CEO that is the responsible for overseeing having the same expectations to EHS performance
and securing worker’s rights in the company, and the board of wherever we operate around the world.
Elkem is responsible for ensuring adherence to the company’s
commitments to labour and human rights. Supported by a strong company culture, Elkem continuously
As an international company, with locations and suppliers work to be a safe and attractive employer for current and future
in a number of countries, it is Elkem’s responsibility to oper- employees. Organisational development, continuous talent man-
ate in a sustainable and ethical manner globally. Elkem's most agement and systematic competence development are key to
important resources are our employees. Ensuring and promot- ensure the successful growth of the company.
ing human rights and worker’s rights are pivotal in this work.
Elkem's human resource policy aims to motivate our employ- ELKEM BUSINESS SYSTEM (EBS)
ees to engage in continuous improvement and personal devel- – OUR COMMON CULTURE
opment. In 2021 we will update our “People policy” – a set of EBS is Elkem's business system and leadership philosophy
global principles for our human resources management, that that enables a common language and provides working and
aim to cover key material issues for our workers. improvement methods for all employees to achieve both per-
sonal and business success. It is the key management system
28 SOCIAL ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 SOCIAL 29
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Health and safety

A strong health and safety culture is the essence of our licence cable EHS topics that have been identified through extensive risk
to operate. Elkem employees, and contractors working on Elkem assessment at all sites. Compliance with the system is internally
property are expected to be fully committed to a safe and healthy audited at site level by corporate and divisional resources rou-
workplace, and to minimise the effects of our operations on the tinely. Elkem’s corporate Vice President for EHS is responsible
environment. Our EHS efforts are based on a zero-harm philos- for Elkem’s EHS management system. In Elkem, EHS is defined
ophy and our EHS management system is implemented to sys- as a line-management responsibility where managers at all levels
tematically work towards this goal. Health and safety has been of the organisation are accountable for the EHS performance in
identified as a material topic to Elkem and includes monitoring their organisations and locations. To ensure line-management’s
and reporting on injuries, EHS training and learning. ability to fulfil this responsibility each site has an appropriate
Elkem has a strict reporting regime for injuries and requires all EHS organisation based on the size of the organisation and the
injuries to be reported, investigated and mitigated independent level of risk.
of severity. Of a lost workday rate (LWR) of 0.8 injuries per mil-
lion work hours for own employees, only one injury was defined INCIDENTS MANAGEMENT
as high severity in 2020. This is a reduction from 2019 when the General requirements for recording, notification and classifi-
LWD rate was 1.1 and the number of high severity injuries 3. There cation of injuries and incidents are based on criteria from US
were no fatalities at the Elkem plants in 2020. OSHA which are relevant for our type of industry. Elkem has a
A zero-harm philosophy implies protecting the health and comprehensive incident management system and expects all
safety of all people working at all Elkem locations. Our commit- employees to report any injuries, incidents, unsafe conditions,
ment to EHS covers all our employees and is stated in our Gen- deviations and non-compliances. All reports are subject to inves-
eral Policy. tigation, mitigation and sharing where appropriate for learning
and improvement. Serious incidents are subject to comprehen-
sive root cause analysis.
Main corporate KPIs Target
for all employees and based on the principles of LEAN. EBS cov- EBS assessments to promote involvement and Recordable injuries and high risk incidents are presented for
ers the entire value chain focusing on EHS, productivity, quality continuous improvement Total Recordable Injury Rate Zero corporate management on a weekly basis for discussion. In addi-
and cost efficiency. Building on our values; respect, involvement, ■ All sites are assessed by a corporate EBS team bi-annually (including fatalities) tion to reporting, incident management also includes emergency
precision and continuous improvements, EBS makes up the core through observation and discussions to evaluate maturity, preparedness. All sites have emergency plans and emergency
First aid injury rate Ensure reporting of all
of Elkem’s company culture. involvement and improvements and to encourage further resources tailored to their level of risk. This varies from simple
first aid injuries
At the heart of EBS is the dedication to involve our peo- development. first-aid and fire extinguishing equipment, to fully equipped
ple in improvement work and empower them to solve prob- ■ Topics in the assessment are divided in three main parts: High Risk Incidents (HRI) Ensure reporting of all in-house emergency response teams.  
lems and improve. Training and competence development at i) Daily operation related to work teams and daily HRIs
all levels of the organisation is a central part of the EBS phi- management, 5S and visual management and problem Unsafe conditions / actions for Four reports per HEALTH AND SAFETY TRAINING
losophy. This is mainly done on-the-job supported by local solving, improvement employee per year Elkem employees receive comprehensive documented EHS train-
trainers or coaches. Elkem takes great pride in empowering ii) systematic improvements related to flow and control ing to ensure full understanding of hazards in the workplace
Absenteeism (Sick leave) No specific target
our employees and believe they are the experts in their own and capability and and how they can avoid harm during daily operations. Training
responsibility areas. We consider that delegated and decen- iii) sponsorship, strategy, learning and competence Work related illnesses Zero activities include:
tralised decision making to be one of the strengths of our development. The focus for 2021 will be increased support
business culture. towards operational performance and business results. ■ Basic training in Elkem’s EHS management system FOKUS
The EBS principles are key to understanding Elkem’s view on Training is being developed onto the digital platforms. EHS MANAGEMENT SYSTEM which is mandatory for all employees.
labour rights and employee involvement. We seek to achieve ■ The focus of the corporate team is on involvement, Elkem has a comprehensive in-house developed corporate EHS ■ Specific work-related training for each work operation
increased efficiency in the product value chain through organ- knowledge and information sharing, and on management's management system called FOKUS (after the Norwegian word and each tool employees are required to use to ensure
isational development within a team-based structure with commitment to empower their employees in continuous for “focus” implying the need for high attention on environ- they have necessary competence to do the job safely and
orderly working and wage conditions, as well as a wide range improvement work through shared goals and tools. ment, health and safety issues throughout the organisation) without harm to their health or to the external environment.
of opportunities for personal development. Developing a com- that applies for all sites and activities worldwide. All Elkem ■ Awareness training to ensure each employee understands
mon language and culture takes time. When Elkem establishes Over the last years, Elkem has expanded its presence globally, employees are covered by the system. how their personal behaviour can affect the health and
or acquires a new organisation, the priority is to employ our EHS particulary in China. Our previous experience from China has Requirements and provisions in the system are also appli- safety of themselves and others.
and EBS standards and systems, regardless of the location or shown that cultural and maturity differences have not hampered cable for all contractors (100%) working on Elkem property. In
previous organisation of the site. Some sites in Elkem are at the the implementation and development of EBS. We acknowledge addition, suppliers of raw materials and goods are also required Training needs and completed training activities are annually
beginning of this journey, while other entities have come a long the improvements that need to be implemented to raise the to comply with basic EHS rules and regulations as part of our reviewed through development discussions with each employee
way in their maturity. standards to the same level as the rest of Elkem Group. As the contractual purchasing agreements with them. and documented at site level.
focus has been to hire local employees, we are continuously train- Elkem’s EHS management system is built around recognised For more comprehensive information, see elkem.com health-
ing a new workforce and revealing gaps to advance the EHS, EBS international standards for EHS management and covers appli- and-safety.
and compliance functions in China.
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Employees – disclosure of work-related injuries* Labour rights

Target KPIs 2018 2019 2020
Elkem does not accept any behaviour that conflicts with basic HUMAN RIGHTS
Zero recordable injuries Work-related injuries Nr. Rate Nr. Rate Nr. Rate human rights including any form of harassment, discrimina- Respect for human rights is one of Elkem’s values. The group is
tion, threatening or inappropriate behaviour. The organisation fully committed to avoid complicity in human rights abuses, and
Fatalities 0 0 1 0.1 0 0
embraces the dignity of all human beings and the Elkem val- to respect, protect and promote human rights throughout our
High-consequence work-related injuries 6 0.5 1 0.1 1 0.1 ues support the commitment to human rights. At the core of operations in accordance with:
this and material to Elkem is labour rights including freedom of
Lost workday injuries 15 1.1 14 1.1 10 0.8
association, right to collective bargaining, and avoiding the use ■ The UN Universal Declaration of Human Rights.
Zero cases of serious occupational illness Other recordable injuries 14 1.1 14 1.1 19 1.5 of forced or child labour. ■ The UN Guiding Principles on Business and Human Rights.
Total recordable injuries 29 2.2 28 2.2 29 2.3 In 2021, Elkem will update Elkem People policy, a set of global ■ The International Bill of Human Rights.
principles for the working conditions for all employees. ■ The UN Global Compact.
Hours worked 13,142,219 13,037,309 13,097,248 ■ The International Labour Organisation’s Declaration on
COLLECTIVE BARGAINING AGREEMENTS Fundamental Principles and Rights at Work.
Contractors – disclosure of work-related injuries* Elkem fully endorses employees’ freedom of association and
collective bargaining rights. These rights give employees the We report on actions to prevent human rights in accordance with
Target KPIs 2018 2019 2020
ability to influence changes and find solutions together with the UK Modern Slavery Act and the French Duty of Vigilance Law.
Zero recordable injuries Work-related injuries Nr. Rate Nr. Rate Nr. Rate their employer, and have a long tradition and strong standing Elkem’s operations cover challenging markets such as China,
in most of the countries where we operate, like Norway and Malaysia, India, South Africa, Brazil, Mexico and Paraguay. Human
Fatalities 0 0 0 0 0 0
France. Elkem is also present in regions where collective bar- rights issues are often deeply embedded in the local culture and
High-consequence work-related injuries 2 0.5 0 0 0 0 gaining agreements and freedom of association is less preva- can only be mitigated by engaging with stakeholders, govern-
lent. Our Human Rights policy clearly states that all employees ments, and local communities.
Lost workday injuries 8 2.0 7 2.0 6 2.2
should be allowed to organise themselves and collectively bar- The duty to respect human rights also applies in our rela-
Zero cases of serious occupational illness Other recordable injuries 12 3.0 9 2.6 7 2.5 gain with management, to the extent that it is legally possi- tions with business partners, suppliers, customers, local
Total recordable injuries 20 5.0 16 4.6 13 4.7 ble. Elkem also supports efforts for supplier’s employees to communities, and others who are influenced by company
associate and information about these rights and obligations activities. Human rights, and especially workers’ rights, have
Hours worked 3,967,988 3,511,412 2,761,047 are found in contractual agreements and our Code of conduct always been a top priority for Elkem. An updated Human
for business partners. Rights policy was established in 2020.
* All rates are calculated per 1,000,000 working hours. The level of trade union coverage varies from country to coun- As we grow and enter into new and challenging markets,
try. In some countries the operators are organised under one we see the need to take on a more systematic approach to our
2020 employee injury breakdown collective bargaining agreement. In other countries there are no human rights strategy. We will therefore conduct Human Rights
■ 1 high-consequence work-related injury (fingertip unions represented in Elkem’s entities. At sites where there are Impact Assessment (HRIA) in selected areas, where we work to
amputation). no formalised labour unions, local management is encouraged identify Elkem’s actual impact and the risk of impact on human
■ A total of 29 recordable injuries (Total recordable injuries to set up channels and arenas for collaboration where employees rights throughout our value chain. This will be concluded in 2021.
include lost work day, medical treatment and restricted are informed about the company’s status and allowed to raise Based on the HRIA, we will identify Elkem’s human rights prior-
work injuries) where main types of injuries were lacerations, concerns and influence decisions that affect them. The EBS tools ities and launch a human rights action plan. In 2021, we are also
bone fractures, burns and sprains/strains. and culture supports this as involvement in decisions is part of launching a human rights training programme.
the management system.
High-potential work-related incidents Elkem complies with local statutory requirements regarding Respond to adverse events
In addition to recordable injuries, a total of 147 high-potential freedom of association in all countries where we are present. Even with the best practices, a business may cause or contrib-
work-related incidents (high risk incident) were identified at Pursuant to the provisions of the Norwegian Companies Act, ute to an unforeseen adverse human rights impact that was not
Elkem sites in 2020, down from 160 in 2019. All recordable injuries employees have three representatives and two observers on foreseen or which it was unable to prevent. In such events, Elkem
and high-potential incidents are fully investigated, and measures the board of Elkem ASA. does it outmost to prevent or mitigate the impact:
are implemented to prevent similar incidents from happening in In 2020, Elkem started tracking the number of employees
the future. Detailed information is also shared with other sites covered by collective bargaining agreements/union agreements. ■ If Elkem causes an adverse human rights impact, we take
to ensure implementation of learnings from the incidents at all In total, 64% of our employees are covered by such agreements, the necessary steps to cease or prevent the impact.
applicable Elkem sites. but there are significant local and regional variations.   ■ If Elkem contributes to an adverse human rights impact,
we take the necessary steps to cease or prevent our
AUDIT PROGRAMME 2019 2020 contribution and use our leverage to remediate any impact
Elkem has a comprehensive Corporate EHS audit programme to the extent possible. Whenever we have leverage to
Employees covered by bargaining 61% 64%
where all production sites are audited on site minimum every prevent or mitigate the adverse impact, we exercise it.
agreements
other year. The target for 2020 was 20 audits. Because of COVID- ■ Where we have no leverage, we terminate the relationship.
19 travel restrictions only 7 of these were done during the year.
The rest will be moved to 2021 when travel restrictions are lifted.
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Diversity and equality

Having employees that represent the global presence of the com-
KPI Unit 2018 2019 2020
pany and diverse cultural and individual backgrounds, is a great
benefit to the company and a key for success. Elkem is not only a Female share % 25% 25% 25%
global group, but also a local employer and values the strength
Women in % 23% 23% 24%
of local management and staff wherever Elkem is present.
management
Elkem is committed to ensuring equal opportunities for all teams
our employees and an inclusive work culture. We appreciate
and recognise that every individual is unique and valuable and Female % 24% 25%
should be respected for his or her individual abilities. There is no leaders over all
acceptance for any form of harassment or discrimination based Implement Status N/A Started Some
on gender, religion, race, national or ethnic origin, cultural back- a mentor setbacks
ground, social group, disability, sexual orientation, marital status, programme due to
age or political opinion.   for women Covid-19
Our focus on equality and diversity, our corporate values and
Female share % 25% 32% 19%
the Code of conduct are essential topics in the Elkem Onboard-
in leadership
ing Programme (EOP), which is part of the mandatory training
programme
for all new employees. All managers in Elkem are expected to
be strong ambassadors of diversity and equality, and diversity Female share % Not Not 58%
has been a key topic in the Elkem Leadership programme for in trainee reported reported
several years. Elkem's new leadership development programme programme
for first line managers worldwide also includes training on diver-
sity. Each manager is responsible for following up the principle
Female share 2018 2019 2020
of non-discrimination.  
Due to Elkem’s growth in the Asian region over the recent years, Blue-collar 18% 18% 21%
several initiatives have been implemented to ensure applicable
White-collar 34% 34% 34%
When necessary, we consult externally with credible, inde- by trained and qualified people. To ensure compliance with these training in our Code of conduct and the principle of non-discrimi-
pendent experts, including governments, civil society, national procedures and our Human Rights policy, several measures are in nation in this region. The Asian branch of our compliance depart- Total female share 25% 25% 25%
human rights institutions and relevant multi-stakeholder ini- place. Elkem has strict routines to ensure that all official permits ment has adapted the corporate Code of conduct training with
tiatives. and registrations are in accordance with local law, and that all content and ethical dilemmas based on a local business context.
employees have written employment contracts, insurance cov- Training sessions have been conducted in order to ensure that all The female share in Elkem was 25% in 2020, and Asia was the
CHILD AND FORCED LABOUR erage and correct tax payments. EHS and CSR audits are regu- employees fully understand and commit to the Code of conduct. region with the highest proportion of female employees, with
Elkem has operations in parts of the world where there is a risk larly conducted at all plants, with specific focus on these topics 27%. The female share of part time employees was 60% and the
of child labour and forced labour, such as parts of Asia, South for plants in high risk areas. Incidents in 2020 female share of temporary hires was 18%.
America and Africa. We take this risk most seriously, and we will Elkem’s suppliers have contractual obligations to ensure The female share in Elkem has been stable over the past years.
2018 2019 2020
not tolerate the use of child or forced labour in any of our opera- that no children under the age of 15 (14 in some selected We have decided to intensify the focus on attracting and retain-
tions and facilities. We expect the suppliers and contractors with countries) work at our suppliers’ plants and that they limit Reported incidents of discrimination 1 1 0 ing more women, especially in management positions. We have
whom we do business to uphold the same standards. hazardous work and night work to persons over 18 years of thereforer launched several initiatives specifically aimed at our
The Human Rights policy protects the rights of the employ- age. These standards are secured legally by contract through female employees.
ees and the stakeholders that are specifically vulnerable to our pre-audit for approval of new suppliers and regular audits for FEMALE SHARE In 2020, 25% of those with leader responsibility were women,
activities. The age limit for working in Elkem is 18 years, with existing suppliers. Elkem values gender diversity and aims to achieve a better gen- and the share of women in management teams was at 24%. One
exception for vacation substitutes and vacational students, The Code of conduct for Elkem’s Business Partners is attached der balance year on year. The process industry is generally male concrete action to improve our share of female leaders is to actively
where the limit is 16 years. Vacation substitutes under 18 years to all new contracts to ensure the compliance of our suppliers. dominated. Women are, however, increasingly expressing an encourage women to apply for management positions internally.
old and students are only allowed to do light and simple work A new procurement system will be in place in 2021, that will ena- interest in working in our industry as increased automation leads Elkem strives to have at least 50% women among the partic-
that is deemed safe and does not conflict with school partic- ble better follow-up of the Code of conduct with suppliers and to less heavy manual work. A high focus on environment, health ipants invited to Elkem’s leadership training programmes. The
ipation. Elkem does not allow children below the age of 16 to secure compliance with Elkem’s expectations. and safety ensures a better working environment and more sus- female participation rate in the programme dropped to 19% in
be employed in our operations. Apprenticeships or other pro- tainable operations. 2020, far from our target. There are concrete plans to increase
grammes are accepted for children under 16, but only if this Incidents in 2020 the resources in order to improve our efforts on diversity and
enhances the child’s education. Targets set up concrete diversity and inclusiveness initiatives, and we
Elkem strongly condemns human trafficking as a breach of 2018 2019 2020 expect this to affect this target going forward.
basic human rights. ■ Increased share of women, year on year The corporate recruitment policy and related training mate-
Reported incidents of child or forced 0 0 0
Working at some supplier production sites or at some of our rials includes topics such as including female recruiters and/or
labour in Elkem or with suppliers ■ Increased share of women in management teams
own plants is considered high risk work and must only be done managers in each recruitment process and tracking the propor-
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Community engagement and dialogue

Input from local communities is valuable for Elkem in order to LOCAL COMMUNITY SUPPORT AND VOLUNTEERING
conduct responsible business. Elkem is an important commu- A number of Elkem plants have implemented local initiatives and
nity player in several of the locations where sites and plants are support programmes. Elkem’s community support includes initi-
based. Creating and maintaining a stable and safe working envi- atives for better education and local infrastructure, sports activ-
ronment in the local community is Elkem’s main form of com- ities, local community poverty reduction and food support, and
munity support. Through our operations, we aim to contribute other social impact initiatives.  
to the economic and human development of our employees and Elkem is positive to volunteer community work done by its
the communities in which we operate. Dialogue with community employees and to giving financial support to local non-profit
is based on local needs and experiences. For more information help organisations if the support is given without any expecta-
on types of dialogue, read our stakeholder engagement work tion or requirement for return service or preference. Any financial
on page 11. support shall be given in a fully open and transparent manner in
Dialogue with local communities is the responsibility of each accordance with local legislation.
plant or site manager and is carried out both formally and in an A number of Elkem plants have local initiatives and support
informal way. It is the plant or site manager’s responsibility to be programmes. Our local initiatives and support programmes are
aware of all relevant stakeholders and engage in dialogue where subject to guidelines for what is permitted and what is not, to
relevant, such as when changes are happening at the plant/site avoid corruption. Any financial support shall be given in a fully
or when emergency training is being held. open and transparent manner according to local legislation. It is
The dialogue and community involvement differ from site to up to the local plant or unit to set goals and to evaluate the local
site, and is subject to historical, local and materiality factors for community programme support.
each plant. In the annual, global stakeholder survey, examples
of local community efforts on Elkem sites have been identified: Examples of events or programmes that Elkem support locally
or regionally:
tion of female candidates throughout the process. The trainee 2020 and we cannot directly compare the numbers to previ- ■ Stakeholder engagement plans based on stakeholder
programmes have been prioritised and made more attractive in ous years. mapping. ■ Local sports clubs, both for children and adults.
order to recruit women. The share of women in the trainee pro- The female share of management teams reporting to top ■ Social impact assessments. ■ Scholarships (high school and universities).
gramme for 2020 is 58%. management in Elkem is at 24%. However, there are great dif- ■ Environmental impact assessments and ongoing ■ School programmes with focus on building technology
Parental leave is only tracked in Norway for 2020. Eligible ferences within the organisation. Some places in the organisa- monitoring. skills.
women took on average 38.7 weeks leave, and men took on tion, women accounted for over 50% of plant or site management ■ Public disclosure of results of environmental and social ■ Summer school/camps.
average 18.5 weeks leave, out of the maximum of 52 weeks regu- where in other locations, there are no women in management impact assessments. ■ Cancer research programmes.
lated by the government. A mentor programme targeting female at all. ■ Local community development programmes based on local ■ Safety training and first aid kits to local organisations.
mentees was planned to be rolled out in 2020. Due to the human communities' needs. ■ Poor family support programmes.  
resources implications of Covid-19, this programme is delayed, AGE DISTRIBUTION OF EMPLOYEES IN ELKEM ■ Local community consultation meetings.
but will be rolled out in 2021. Furthermore, Elkem will increase In 2019, Elkem started tracking the age distribution of employ- ■ Work councils, occupational health and safety committee A universal guideline on community support has been devel-
the resources supporting diversity and inclusion work in the com- ees. The tracking indicates that almost two thirds of the employ- and other worker representation bodies. oped, with some delays on implementation. The purpose of the
pany during 2021. ees are 30-50 years. The age distribution for blue-collar and guideline is to assist local decision makers at our plants when
white-collar employees is very similar to the overall age distri- Identifying relevant stakeholders and structuring an action plan they engage with local stakeholders in monetary or other formal
BOARD OF DIRECTORS AND MANAGEMENT bution for employees. towards them is included in the certification of ISO 9001 – quality support. The support guideline is based on the principles of the
Elkem’s board of directors consists of 11 members from Germany, management system. In addition, we have developed our own UN Global Compact and, once implemented, any support shall
France, China and Norway. Three out of eight shareholder elected stakeholder tool for projects and plants. The stakeholder analy- be based on these principles.
board members are women, in accordance with Norwegian Pub- Age distribution of employees in Elkem 2019 2020 sis tool is a mapping, analysis and planning kit intended to sup-
lic Limited Liability Companies Act. Furthermore, one out of the port Elkem’s divisions, plant, and unit managers to engage with GRIEVANCE MECHANISMS
< 30 years 16% 14%
three employee elected representatives, is female. The female high-priority stakeholders in a way that supports Elkem’s goals. Elkem has a transparent approach to managing grievances
share of the board is 36%. Two of the eleven board members 30-50 years 59% 60% The tool kit was introduced to several Elkem plants in 2020. and encourage all stakeholders to submit a grievance in case
are in the age group 30–50 years old. The rest of the members Important topics that have emerged from our dialogue with they observe any incidents in our operations or supply chain.
> 50 years 25% 26%
are 51 years or older. local communities include community development projects, Communities and other stakeholders are encouraged to report
The corporate management team of Elkem consists of nine job security, safe operations, emissions and other environmen- grievances and other concerns, either through local channels or
people from France, Norway, Germany and Brazil. The manage- Age distribution in management teams 2019 2020 tal issues and traffic generated by the plant. Complaints raised through corporate tools.
ment team consists of eight men and one woman. One of the by local communities are registered, managed and followed up In accordance with the UN Guiding Principles on Business
members is in the age group of 30 to 50 years old and the rest < 30 years 3% in accordance with good practices for incident and deviation and Human Rights, Elkem is committed to remedy situations
are 51 years or older.   30-50 years 64% management. This is both done through local channels at the where Elkem’s activities have caused or contributed to adverse
Due to organisational changes, going from four to three sites and through corporate tools, such as the speak up channel human rights impacts. If something is not right, Elkem wants to
business divisions, the management teams were updated in > 50 years 33% and grievance mechanism. know about it. That is why we have set up an external grievance
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mechanism that allows for anonymous reporting and engaging cerns related to our plants, projects or other business activities Employment
with stakeholders. worldwide. The grievances can be reported in key Elkem lan-
A global grievance mechanism tool was made available to guages. During the launch of the tool in 2020, no material com- 2018 2019 2020
external stakeholders through the Elkem website in 2020, to plaints were reported through the channel. Going forward, Elkem Employees 6,280 6,370 6,856
improve the incident report and remedy possibilities for external will continuously encourage our stakeholders to use the tool for
stakeholders. In addition, every plant has a local contact point reporting to ensure that all grievances are being handled and Operators / blue-collar 67% 66% 65%
that is well established in order for stakeholders to submit griev- followed up on. There has been few changes and no new con- Staff / white-collar 33% 34% 35%
ance issues. At the corporate level we do not track dialogue at troversies at Elkem’s plants in 2020. Previous years grievances
local level, unless there is a grievance that a local manager would have been handled according to procedures prior to the imple-
need corporate assistance to solve. The grievance mechanism mentation of the online grievance mechanism was launched. TURNOVER
is targeted towards stakeholders who have feedback or con- Elkem strives to remain an attractive employer, both to retain
existing employees, and to attract new ones. Turnover rate is
an indication of attractiveness and how well Elkem manages to
retain our employees. The total turnover rate in the Elkem group
was 6% in 2020. The female share of new hires was overall 26%
and the female share of leavers was 23%.
Turnover in Elkem
2018 2019 2020
Turnover rate 5.4% 8% 6%
Female share of new hires 22% 30% 26%

Contractors by region
Female share of leavers 22% 17% 23%
2018 2019 2020
Europe 241 327 115

CONTRACTORS AND TEMPORARY HIRES
Asia 188 155 265
Contractors provide services of many kind at Elkem’s plants and
other locations around the world and are subject to the same Africa 0 0 0
EHS requirements as our own employees. All contractors receive
Americas 149 157 40
full training and follow-up to ensure that they work in a safe and
healthy environment.
The number of contract employees in Elkem was 420 in 2020, EMPLOYEE DEVELOPMENT
defined as non-Elkem employees working full-time for more than Elkem is active in many markets and the need for continuous
three months as a substitute for hired employees. development, improvement and innovation is constant. The
organisation’s improvement work needs to be targeted, fast-
Contractors and temporary hires in Elkem paced and of high quality. Elkem actively uses employees’ day-
to-day work situation as the primary arena for learning. We
2018 2019 2020
believe that the best way to develop new skills is to participate
Contractor 833 882 420 in actual improvement processes and problem-solving cases
based on the EBS principles. We also consider taking on new
Temporary hire rate (%) to - - 6%
responsibilities as a very important way of learning and devel-
permanent employment
oping. In addition to that, we offer a wide range of both in-house
Part time workers rate (%) to - - 3% and external training programmes.
permanent employment Agreeing on an individual development plan is part of the
annual development discussion that all employees in Elkem
shall have with their leader. Elkem’s global target is that 100%
of employees of all positions and locations shall have an annual
development discussion with their leader. In 2020, 85% of Elkem
employees had an annual development discussion, an increase
from 2019. There were some setbacks due to Covid-19 and includ-
ing new units in the company, which explains why we did not
reach the 100%. However we see a positive development over
the last years.
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ESG: include employees’ completion of compliance training in order to

drive and further develop good compliance culture, no substan-
rial environmental, social and governance related topics, Elkem
consults with its key stakeholders. An updated materially anal-
tiated misconduct cases as well as criteria linked to ESG ratings, ysis was conducted in 2020 where key stakeholders, such as
Governance embracing a wide range of climate and environment-, health and

safety-, sustainability- and social targets.
In order to ensure that Elkem identifies and covers all mate-
labour unions, customers, investors, banks, NGOs, governmen-
tal institutions and employer’s organisations were interviewed.
See page 13 for material topics for Elkem.
Elkem considers good corporate governance to be a prerequisite for value creation and
trustworthiness. In order to secure good and sustainable corporate governance, Elkem strives
for environmentally friendly and healthy business practices, reliable financial and non-financial
reporting and a strong compliance culture across the group.
2,830 3,334 100%

employees received employees received of new raw material suppliers
98%
of employees
anti-bribery and ethics and code of subject to assessment and have signed
corruption training conduct training pre-qualification screening Code of conduct
Elkem endorses the Norwegian Code of Practice for Corporate governance documents. The board’s report on corporate gov-
Governance (“NUES” or the “Code”). The principles of the Code ernance is included in this report on page 51.
are reflected in the corporate governance policy and in all other
Corporate governance
Governance has been identified as a material topic to Elkem The ESG steering committee is also responsible for review
and includes our board and management structure and remu- and approval of Elkem’s ESG report and that all material top-
neration. Elkem’s business strategy and corporate governance ics are covered.
policy are approved by the board of directors and provide the
overall framework for the group’s strategic direction and gov- REMUNERATION
ernance structure. Other policies and procedures are generally The CEO and corporate management have performance-based
approved by the corporate management or the ESG steering metrics in their short-term incentives. The metrics are defined
committee. according to areas of responsibility. The incentives to corpo-
Ultimately, the responsibility for ESG related issues lies with rate management do not contain any clawback provisions as
the board of directors. ESG issues are an integrated part of the such. The performance related incentives are limited to 100%
business strategy and the board is actively engaged in defining of base salary for CEO and 50% of base salary for the corpo-
and approving relevant targets, e.g. reduction of the group’s rate management. Clawback provisions are not deemed to be
fossil CO2 emissions. critical element. The CEO salary to median worker wage in Nor-
In 2020, Elkem established an ESG steering committee which way was 11:1 in 2020.
is the corporate body with responsibility for ESG-related issues,
including climate. The ESG steering committee replaced the pre- The metrics for the CEO for 2020 were:
vious CSR committee with the objective of further strengthening ■ Health and safety performance with target of zero high
the focus and ensuring best practice in environment, social and severity (life changing) incidents.
governance. The responsibility of the ESG steering committee ■ Environmental performance target of zero major
was also extended to include all ESG related issues. The ESG environmental cases.
steering committee consists of members from the corporate
management and is led by the CFO. The ESG steering commit- The management bonuses for 2021 will be linked to ESG-re-
tee reports to the CEO. lated criteria focusing on compliance and sustainability. Criteria
40 GOVERNANCE ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 GOVERNANCE 41
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KPIs Unit 2018 2019 2020 Risk management

Total number of and nature of misconduct reports Number - - Total: 11 Ultimately the board of directors has the responsibility to ensure biocarbon product could have wide applications also for other
Diversion of business to conflict of that Elkem has appropriate risk management systems reflect- companies and smelting industries and is another example of
interest companies: 4 ing the extent and nature of the group’s activities. This includes how the development towards more sustainable solutions also
responsibility for ESG related issues. create opportunities.
Excessive discounts to conflict of
Elkem’s operational philosophy, according to the Elkem Busi- Elkem’s products are key raw materials in customer prod-
interest companies in exchange for
ness System (EBS), is to organise resources close to the value ucts that are essential for other sustainable solutions, and thus
kickbacks: 4
chain and operative functions. This principle also applies to risk represents opportunities. One example is the electrification of
Fraud through false claim: 2 management, which is an integrated part of the line manage- transportation. The expected demand development for elec-
Off-book accounts & expense ment’s responsibility. Risk management has been identfied as a tric vehicles (EVs) represents a significant business potential
reimbursement fraud: 1 material topic to Elkem and corporate help chains, such as EHS, for Elkem as an EV on average contains four times more sili-
quality, product stewardship, compliance, legal, IT, finance and cones than a traditional car with a combustion engine. In addition,
Total number and nature of confirmed incidents of Number - - Excessive discounts to conflict of other control departments, oversee, facilitate and report on the increased demand for EVs will drive demand for batteries and
corruption* interest company in exchange for
risk management activities. battery materials. Elkem has developed a new and environmen-
kickbacks: 1
The board of directors conducts an annual review of the com- tally friendly production process for synthetic graphite to bat-
Fraud through false claim: 1 pany’s most important risk areas. Elkem’s total risk exposure and tery anodes. A pilot plant is under construction in Kristiansand.
business performance is analysed, evaluated and summarised Provided that the upscaling of the technology is successfully
Off-book accounts: 1
at corporate level. The process is bottom up where each of the verified in the pilot the plan is to build a large-scale industrial
Total number of confirmed incidents in which employees Number - - 2: One dismissal for excessive discount divisions and key corporate functions go through a defined pro- plant at Herøya, Norway.
were dismissed or disciplined for corruption* to conflict of interest company in cess to identify and quantify the main risks. The key risks at the However, climate change also poses threats. Elkem has eval-
exchange for kickbacks. One written group level are further analysed both in terms of impact and like- uated both the physical and transitional risks in line with the
warning for off-book accounts. lihood before and after mitigating activities. An overview of the TCFD recommendations. Elkem’s processes and plants are not
Employees who received ethics and code of conduct training Number - - 3,334 / 57% of target group top risks at the group level are presented to the board for review deemed to be exposed to acute physical risks. Neither the loca-
and assessment of risk tolerance and further mitigating actions. tion of the plants, or the production processes are sensitive to
Employees who received anti-bribery and corruption training Number - - 2,830 / 51% of target group
acute flooding, drought, heat stress or wind. However, access
Confirmed incidents when contracts with business partners Number - - 0 CLIMATE RISK to water is important and pose a risk due to the scarcity in
were terminated or not renewed due to violations related to Climate and environment are included in the top risks and Elkem specific regions of the world. Elkem is dependent on water as
corruption has increased its focus on climate related risks and opportunities input to silicones production, for power supply to the compa-
Public legal cases regarding corruption brought against the Number - - 0 during 2020. The climate risk assessment takes into account pos- ny’s smelters as well as for cooling purposes. How water scar-
organisation or its employees sible changes in regulations, customer preference, production city relates to climate changes and can impact our business
technology, physical and market regulations. Elkem decided in is therefore assessed as a part of our strategic planning pro-
Employees who received competition law compliance Number - - 671 / 74% of target group 2020 to implement the climate risk management recommen- cesses. More information can be found under water manage-
training
dations in accordance with the Task force on Climate-related ment chapter on page 24.
Employees with confirmed commitment to Code of conduct % 70% 100% 98% Financial Disclosures (TCFD). The organisation will continue the As the progression of climate change continuous, acute risks
implementation in 2021, and aim to report according to the TCFD might be more relevant in the future. An example is Elkem’s bio-
Employees with confirmed commitment to anti-bribery and % 70% 100% 51%
standard in 2021. carbon strategy for sustainable sourcing of woodchips, charcoal
anti-corruption policy
The fact that key stakeholders increase their attention and and other biocarbon products to its production.
Employees with confirmed commitment to competition law % 70% 100% 74% requirements on climate and companies’ CO2 footprint represents The transitional climate risks are mainly defined as strate-
policy an opportunity for Elkem. The company has a fundamentally gic and operational risks. The strategic risks are mainly related
Policy revisions target: All policies to be reviewed and Status - 100% Not reached strong position as 83% of the group’s electricity consumption is to factors potentially impacting Elkem’s operations, available
updated annually based on renewable energy, mainly hydro power. For many years technology for reducing emissions, changes in regulations from
Elkem has also pursued a strategy to replace fossil coal with bio- authorities and changes in consumer preferences. Our direct
*
In this context, corruption is defined as in GRI 205 and includes practices such as bribery, facilitation payments, fraud, extortion, collusion, and money launder- carbon as a reductant (not an energy source) in its smelting pro- operational risks are related to risks of major emissions or other
ing; the offer or receipt of gifts, loans, fees, rewards, or other advantages as an inducement to do something that is dishonest, illegal, or represents a breach of cesses. The biocarbon share in the Norwegian smelters was at incidents with negative impact on the environment which is inte-
trust. It can also include practices such as embezzlement, trading in influence, abuse of function, illicit enrichment, concealment, and obstructing justice.
20% in 2020, reaching the the 2021 goal. Elkem’s long term tar- grated into a company-wide risk management process.
get is to increase the biocarbon share to 40% by 2030. This gives
Elkem low specific fossil CO2 emissions compared to competition.
In order, to achieve the biocarbon share of 40%, Elkem is par- For a more in-depth understanding of Elkem’s
ticipating in the development of new technology for production climate risk work, visit elkem.com/climate.
of biocarbon from wood waste. A pilot plant is being built in
Canada and is expected to start production in early 2022. This
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Compliance
Elkem has a strong focus on compliance related activities and countries. Elkem also deals with government officials for permits
strives for continuous improvements. and other administrative issues.
The responsibility for the compliance programme lies with In order to enhance the efficiency of Elkem’s internal controls
Elkem’s general legal counsel, but will be transferred to a and measures to prevent bribery and corruption, compliance is
planned corporate compliance director function in 2021. Cor- conducting an anti-bribery corruption risk assessment (ABC risk
porate compliance is further supported by an internal audit and assessment) of the company’s global operations. This assessment
compliance function in China. In addition, a network of compli- will be finished in 2021 and forms the basis for the anti-bribery
ance champions has been appointed across Elkem’s operations. and corruption programme going forward. It will be updated on a
The compliance champions are members of management or regular basis as well as when entering new markets and by intro-
support functions, stationed in each business unit, that assist the duction of new products. Our anti-corruption policy is found on
corporate compliance function in implementing Elkem’s com- Elkem’s website.
pliance programme including training and guidance to their
respective units. WORKING WITH BUSINESS PARTNERS
In order to implement best practice within compliance, Elkem It is important to Elkem to work with business partners of high
engaged external consultants from Deloitte in 2020 to conduct ethical integrity. Elkem does not accept bribery, environmental
an independent assessment of the organisation of the compli- breaches, or human rights violations committed by our business
ance function. The report from Deloitte contains proposed meas- partners. Relationship managers are required to carry out ade-
ures to strengthen and improve the group’s compliance work. quate due diligence on business partners before entering the
The report from Deloitte has been presented to Elkem’s audit business relationship.
committee and the board of directors. Elkem will implement the Elkem’s Code of conduct for business partners builds on the
proposals from the Deloitte report in the course of 2021 and 2022. global code of conduct, anti-corruption policy and human rights
policy. All new suppliers are required to commit to and sign the
COMPLIANCE TRAINING code to become business partners of Elkem.
Elkem is committed to providing relevant and engaging com- We know that bribery cases, human rights breaches, environ-
pliance training. In 2020 Elkem rolled out a new global online mental disasters and EHS scandals often involve business part-
training programme with relevant e-learning to all employees, ners, such as agents, consultants, suppliers, joint venture partners
including training in ethics, anti-bribery and corruption, and and distributors.
anti-competitive practices. The training is refreshed on a reg- In order to ensure that we handle the risk associated with
ular basis, providing employees with new and updated content such business partners in an efficient way, Elkem is rolling out an
every year. The training is available in all key Elkem languages. improved third-party compliance management (TPCM) process
The e-learning programme consists of modules and questions to ensure consistency throughout the organisation, as well as a
have to be correctly answered after each session in order to pro- Third-party Risk Management System (TPRM) tool.
ceed and complete the training. This will ensure that employees This will simplify our processes for risk assessment of all busi-
have understood the content. The training is mandatory for all ness parties through screening business partners against sanction
employees in target group. KPIs are listed in the table on page 42. lists and adverse media, as well as risk based due diligence, audits
The online training is supplemented by face-to-face trainings and monitoring of business partners throughout their lifecycle. The
in high-risk jurisdictions and for high-risk employee groups. The system is due to be implemented in 2021/2022.
trainings are tailored to the specific risks and needs of the tar-
get group. WHISTLE BLOWER
Elkem encourages its more than 6,800 employees as well as
ANTI-COMPETITIVE PRACTICES external parties to report possible dishonest or illegal con-
Elkem is committed to avoiding anti-competitive practices across duct in the business to HR or the legal/compliance depart-
all operations. The competition law compliance policy outlines ment without risk of negative reactions. Elkem has established
what behaviour is considered acceptable and not. grievance mechanisms and channels for reporting of mis-
Elkem conducts anti-competitive practice risk assessments to conduct. The speak up channel can be used for reporting of
identify high risk jurisdictions and employee groups that are most misconduct and non-compliance with Elkem’s Code of con-
exposed and to anti-competitive practices. In addition, assess- duct and is available to all employees and external stakehold- By using the speak up channel, the reports can be anonymous, and communicated through Elkem’s intranet site, website and
ments are made to identify red flags and mitigate any gaps. ers. It allows for anonymous reporting in all Elkem languages also within the compliance department and the reporter will not through training, physical posters and handouts at plants and
with a clear guidance on how to report concerns. In order to be required to leave a name or contact information. Elkem has a offices.
ANTI-BRIBERY AND CORRUPTION assure that issues of concern reach top management, Elkem zero tolerance for retaliation against those who report a concern Misconduct reports are handled by corporate compliance
Elkem has a zero-tolerance policy against corruption. Elkem has has developed a procedure for lifting serious issues to man- and will sanction those who retaliate. and in accordance with applicable legislation on misconduct
multiple operations across jurisdictions and in several high-risk agement, the audit committee and the external auditor. The speak up channel and the Speak up policy are available reporting.
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Product stewardship Responsible sourcing and the supply chain

Elkem works to ensure safe handling, use and disposal of our We make sure to stay up to date with any REACH obliga- Responsible sourcing is a strategic priority for Elkem. The group Contracts with suppliers ensure that risk assessments and audits
products. Product stewardship is the responsible and proactive tions for all our products to ensure a high level of protection of sources raw materials, capital goods and services for its oper- can be conducted both prior to pre-qualification and at any stage
management of health, safety and environmental aspects of a human health and the environment. The Article 33 of REACH ations around the world. Elkem’s total procurement spend is of the supplier contract. Elkem has a Code of conduct for busi-
product throughout its lifecycle. requires suppliers of articles (manufacturers or importers) to approximately NOK 16 billion per year, covering supplies of raw ness partners. The business partner code sets out Elkem’s expec-
Proactive management of use of chemicals and the protec- inform European downstream users about the presence of sub- materials, energy, goods, services and logistics. The active sup- tations to suppliers with regards to ethics, labour rights and social
tion of the environment and the human health are fundamen- stances of very high concern (SVHC) when their concentration ply base consists of about 15,000 suppliers globally. The number and environmental issues.
tal pre-requisites for conducting our business and securing our exceeds 0.1% (w/w). Elkem regularly monitor its product port- of raw material suppliers is relatively low while the number of We require all suppliers to endorse the business partner
licence to operate. Compliance with chemical product regulations folio for SVHC substances that are subject to existing or future suppliers of goods and services such as hardware, plant equip- code and maintain their commitment throughout the relation-
include product registrations, product authorisations, safety data regulatory restrictions or that are associated with particular con- ment and services are high. ship. The business partner code is considered an integral part of
sheets and product labels. There are also industry specific regu- cerns. We review our management plans regularly defining the Responsible sourcing means looking at what we procure any agreement that regulates the relationship between Elkem
lations that Elkem complies with, for example for products that specific risks associated with each identified SVHC substance. beyond the more traditional aspects such as cost, quality and and a supplier.
are in contact with food and water (packaging) or health care We review all possible options to mitigate identified risks includ- delivery time. Elkem is committed to consider ethics, labour rights,
(band aid/wound care). ing possible substitution where possible, phasing-out any sub- social and environmental issues when sourcing products and ser- SUPPLIER DUE DILIGENCE AND SCREENING
With a portfolio of more than 4,000 different products that stance posing an unacceptable risk to human health and/or the vices across all procurement categories and across all operations. The procurement function is responsible for carrying out
are used in a multitude of applications, regulatory and product environment or limiting the exposure of the SVHC substance if pre-qualification and risk assessments of suppliers based on
compliance is key for Elkem. The document management sys- substitution is not deemed possible. Targets corporate requirements within environment, health and safety,
tem OSCAR has been implemented in the Silicones division and In addition to comply with all chemical production regula- social responsibility, anti-corruption and compliance with laws
■ All new raw material suppliers subject to assessment
ensures that compliance, certificates and regulatory statements tions, the Silicones division is a signatory of the Responsible Care and regulations.
and pre-qualification screening.
are easily available for distribution to customers. Global Charter of the International Council of Chemical Associ- In 2021 Elkem plans to implement a new global supplier
Elkem is committed to comply with international regulatory ations (ICCA). Through participation in the Responsible Care ■ All new suppliers of raw material subject to supplier management system and process for supplier prequalification.
requirements and provides safety data sheets (SDS) for all prod- programme, Elkem is committed to manage chemicals safely audit. All new suppliers of raw materials are screened against envi-
ucts in accordance with UN Globally Harmonized System of Clas- throughout the life cycle. This includes both proactively iden- ronmental and social criteria aligned with the expectations
sification and Labelling of Chemicals (GHS). In all markets where tifying and managing chemical risks and concerns throughout ■ All new suppliers to sign Elkem’s Code of conduct for of the GRI. For high-risk suppliers, additional due diligence
Elkem’s products are promoted, the products must meet spe- our operations and replace substances in the portfolio that pose business partners. assessments are performed (integrity due diligence). The new
cific requirements and comply with certain technical, regulatory, unacceptable risk to human health, safety and environment. system will enable a more unified process for screening and
health and environmental standards. RESPONSIBLE SOURCING AND THE SUPPLY CHAIN vetting of suppliers across all divisions and jurisdictions, track-
As one of the world’s leading suppliers of silicon-based advanced ing and monitoring suppliers’ compliance throughout the con-
materials with operations throughout the value chain from quartz tract lifecycle, as well as identifying and managing supplier
to specialty silicones, Elkem continuously strives to improve the risk. The new system will also include mandatory signing of
way we source our supplies the Code of conduct for business partners in the portal.
The procurement organisation is responsible for raw mate-
rial supply, logistics and transport services and other goods and Supplier audits
services required for Elkem’s operations. Elkem’s procurement A structured auditing programme is in place to ensure that all
organisation is decentralised, with procurement functions both critical suppliers receive regular audits. Regular audits are per-
at corporate level, at divisional and plant level. We further differ- formed by plant personnel or corporate personnel, focusing on
entiate between procurement of major raw materials, and pro- supplies that are associated with risk.
curement of indirect materials. Suppliers of major raw materials
are always considered critical suppliers, and suppliers of indirect EHS IN THE SUPPLY CHAIN
materials may be considered critical, depending on an independ- Elkem has developed detailed requirements for high-risk suppli-
ent assessment. ers and contractors regarding health, safety and environmental
The corporate supply chain has the overall global responsi- standards for operations like mining, transportation, storage and
bility for developing and maintaining Elkem’s procurement and loading, and is actively involved in the promotion and monitor-
logistics strategy, as well as Elkem’s global procurement poli- ing of safe and decent working conditions. This includes health
cies and procedures. and safety training and providing correct personal protection
Elkem has policies and procedures in place to ensure and equipment for suppliers’ employees when necessary. Age con-
govern responsible sourcing. This includes: trol to prevent child labour and ensure responsible working con-
ditions for young employees is also carried out. Elkem requires
■ Procurement policy, outlining Elkem’s procedures for pre- suppliers and contractors to engage their employees with writ-
qualification and management of suppliers. ten contracts on fair terms, and to give them information about
■ Policy for sourcing of bio-carbon, outlining Elkem’s their right to organise and collectively bargain with management
commitment to sustainable forest management and the where this is legally possible.
requirements for procuring bio-based reductants in Elkem.
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Elkem’s requirements are regularly discussed in meetings with External auditors also conduct supplier audits on Elkem’s behalf.
suppliers. High-risk suppliers must demonstrate their under- Violations of Elkem’s requirements are registered and
standing of legal requirements and hazards in their operations addressed with verbal or written warnings in addition to requests
and present plans showing how risk will be eliminated or con- for improvements when necessary. Repeated violations may
trolled while working for Elkem. Elkem performs audits and lead to requirements for speedy implementation of improve-
inspections, both in connection with routine visits for quality, ment plans, financial penalties, or termination of contracts with
technical and business follow-up, and as unannounced site visits. immediate effect.
KPI Unit 2018 2019 2020 Comment
Upgrade process and system for supplier Status In progress In progress In progress CSM system to be
management implemented mid-2021
Share of new raw material suppliers subject to % 80% 73% 100%

assessment and pre-qualification screening in
2020
Share of new raw material suppliers subject to % 100% 100% >90% Some audits not
supplier audit in 2020 performed due to Covid-
19 restrictions
Adverse human rights events identified in Number 0 0 0

supply chain
Share of new suppliers who have signed % - - 90% For 2020: Applies to
Elkem’s Code of conduct for business partners contracted new suppliers
in second half of the year.
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The board of directors’ report on

corporate governance
Good corporate governance is important to ensure confidence in the company and value
creation in the best interest of shareholders, employees and other stakeholders. Environmental,
Social and Governance (ESG) criteria are increasingly used to evaluate how companies perform.
In that respect, this report, combined with Elkem’s ESG report, annual report and website,
document the group’s activities and results.
Elkem is subject to corporate governance reporting require- 2. BUSINESS

ments according to section 3-3b of the Norwegian Account- Elkem’s mission is to contribute to a sustainable future by provid-
ing Act and the Continuing obligations of stock exchange listed ing advanced silicon, silicones and carbon solutions, adding value
companies at Oslo Stock Exchange. Further, Elkem’s board of to our stakeholders globally. Elkem’s business scope is clearly
directors endorses "The Norwegian Code of Practice for Cor- described in section 3 of the articles of association:
porate Governance" (the "Code"), most recently revised on 17
October 2018 and issued by the Norwegian Corporate Govern- The object of the company is to develop and engage in indus-
ance Policy Board. The Code of Practice is available at www. try, mining, trade and transportation as well as exploration
nues.no. and exploitation of natural resources. The company may also
This report follows the system used in the Code, and forms develop, acquire and exploit patents inventions and technical
part of the board of directors’ report. knowhow. The company may participate directly or indirectly
or by other means in companies engaged in activities outlined
above or activities that promote or support such objects.
1. IMPLEMENTATION AND REPORTING ON
CORPORATE GOVERNANCE Elkem was founded in 1904 and is a market leader in the pro-
Elkem’s corporate governance policy is based on the Code, and duction of silicon-based advanced materials. Elkem is a fully inte-
as such designed to establish a basis for good corporate gov- grated producer with operations throughout the silicon value
ernance to support achievement of the company’s core objec- chain from quartz to silicon and downstream silicone speciali-
tives on behalf of its shareholders, including the achievement of ties, as well as speciality ferrosilicon alloys and carbon materials.
sustainable profitability. Elkem is operating in capital intensive industries and has 31
Elkem believes good corporate governance involves open- production sites and an extensive network of sales offices around
ness and trustful cooperation between all parties involved in the the world. While this gives competitive strengths, it also gives
group: the shareholders, the board of directors and executive exposure to a range of risk factors. The board of directors has
management, employees, customers, suppliers, public authori- defined goals and strategies for the business and has a clear focus
ties and society in general. on risk profiles and risk management to create value for the com-
By pursuing the principles of corporate governance, the pany’s shareholders. More details on the main risks and risk man-
board of directors and management contributes to achieving agement principles are presented in the annual report. See also
open communication, equal rights for all shareholders and good section 9 below.
control and corporate governance mechanisms. The board of The board has set out specialisation and continued growth as
directors assesses and discusses Elkem’s corporate governance the main strategic priorities. Focus on further product speciali-
policy on a yearly basis. sation through R&D and selected acquisitions is a key strategic
Elkem aspire to comply with the recommendations of the measure to improve and stabilise the group’s profitability. The tar-
Code. If the Code is deviated from, the deviation is described get is also to grow Elkem’s business both organically and through
and explained in the relevant section of this statement. acquisitions to secure and strengthen the group’s attractive posi-
tions in growth markets driven by global mega-trends. To sup-
No deviations from the code. port its strategic goals, Elkem will focus on operational excellence,
digitalisation, people development and ESG (Environment, Social
and Governance). These initiatives are seen as crucial parts of the
ELKEM ESG REPORT 2020 THE BOARD OF DIRECTORS’ REPORT ON CORPORATE GOVERNANCE 51
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group’s strategy to secure profitable and sustainable growth. The company’s dividend policy is to aim for dividends distri-
Risk management and internal control systems are in place butions to reflect the underlying earnings and cash flow of the
to manage operational risks. The company aims to maintain a group and targets a dividend pay-out ratio of 30-50% of the
strong financial profile with a robust capital structure. The tar- group’s net income for the year. The proposed dividend pay-out
get, based on earnings over the business cycle, is to have a lev- for the financial year ended 31 December 2020 is NOK 87 million,
erage ratio of 1.0x – 2.0x, defined as net interest-bearing debt which corresponds to NOK 0.15 per share. The proposed dividend
to EBITDA. represents 36% of the group’s net income in 2020.
Sustainability is central in Elkem’s business strategy. Elkem The board of directors has not been granted any authorisa-
defines sustainability work as continuous efforts to maximise the tion to approve distribution of dividends.
positive impact on the environment and societies, as well as to
minimise any negative impact. Elkem is a signatory to the UN At the annual general meeting on 8 May 2020, the board of direc-
Global Compact and apply sustainability in line with the princi- tors was granted the following authorisations:
ples of the UN Global Compact. Elkem is committed to develop
its business in support of the ambitions of the Paris climate agree- i. In order to give the board of directors financial flexibility
ment and the UN Sustainable Development Goals (SDGs). Elkem and enable quick access to the market in the event
is also committed to follow the United Nations Guiding Princi- of an acquisition in return of shares or for general
ples on Human Rights and Business. Elkem’s Silicones division corporate purposes, the board of directors was granted
is a member of the Responsible Care Global Charter which is the an authorisation to increase the share capital with an
chemical industry’s global initiative to drive continuous improve- amount up to NOK 290,655,172 corresponding to 10%
ment in environment, health, safety and security. of the current share capital. The authorisation covers
Elkem has implemented guidelines and procedures in accord- share capital increases against contribution in kind and
ance with section 3-3c of the Accounting Act, including Code of share capital increase in connections with mergers. The
conduct, policy on anti-corruption and CSR polices. shareholders’ preferential rights to new shares may be
Elkem's objectives, strategy and financial targets are evalu- deviated from. The authorisation is valid until the annual
ated by the board of directors on an annual basis. The board general meeting in 2021, but no longer than to and
also reviews the group’s performance in ESG and evaluates the including 30 June 2021.
risk profile and make regular assessments of these processes to
ensure high quality standards. ii. The board of directors was granted an authorisation to
increase the share capital up to NOK 40,000,000 to be
No deviations from the Code. used in connection with the issuance of new shares under
the company's share incentive scheme. The authorisation is
valid until the annual general meeting in 2021, but no longer
3. EQUITY AND DIVIDENDS than to and including 30 June 2021.
As at 31 December 2020, the group’s equity was NOK 12,635
million, which is equivalent to 41% of total assets. The total iii. In order to allow the board of directors to utilise the
issued share capital of Elkem amounted to NOK 2,906,551,720 mechanisms permitted by the Norwegian Public Limited
divided into 581,310,344 shares, each with a nominal value of Liability Companies Act to acquire own shares, the board 4. EQUAL TREATMENT OF SHAREHOLDERS AND parties of any such parties, the board will arrange for a valua-
NOK 5. of directors was granted an authorisation to acquire own TRANSACTIONS WITH CLOSE ASSOCIATES tion to be obtained from an independent third party. In 2020,
Elkem aims to maintain an investment grade profile and tar- shares with a total nominal value of up to NOK 290,655,172 All shareholders shall be treated on an equal basis, unless there there were no significant transaction between the company and
gets a leverage ratio, defined as net interest bearing debt to corresponding to 10% of the current share capital. The is just cause for treating them differently. related parties, except for ordinary commercial transactions at
EBITDA, in the level of 1.0 – 2.0 times, based on earnings over the maximum amount that can be paid for each share is NOK In the event of an increase in share capital through the issue arm’s length market terms.
business cycle. As at 31 December 2020, the leverage ratio was 150 and the minimum is NOK 1. The authorisation is valid of new shares, a decision to waive the existing shareholders’
3.0 times, which is above target, as a result of lower EBITDA due until the annual general meeting in 2021, but no longer than pre-emptive rights will be publicly disclosed in a stock exchange No deviations from the Code.
to challenging market conditions caused by Covid-19. The board to and including 30 June 2021. announcement issued in connection with the share issuance.
of director’s target is to ensure a leverage ratio in line with policy Elkem did not resolve any share capital increases in the financial
over the business cycle. In addition, Elkem aims to keep a robust Deviations from the Code: The board of directors' authorisation to year ended 31 December 2020. 5. FREELY NEGOTIABLE SHARES
liquidity reserve and a smooth maturity profile on its loan port- increase the share capital with an amount up to NOK 290,655,172, If Elkem should carry out any transaction in its own shares, The shares in Elkem are freely negotiable and there are no restric-
folio to mitigate financing and liquidity risk. As at 31 December corresponding to 10% of the current share capital can be used for this will be carried out either through the stock exchange or at tions on any party’s ability to own, trade or vote for the share
2020, available cash amounted to NOK 3,154 million providing a several purposes. Elkem believes that this authorisation is impor- prevailing stock exchange prices to ensure equal treatment of all in the company. Elkem has only one class of shares. Each share
strong liquidity position. In addition, Elkem has undrawn credit tant in order to allow the board of directors, in the interest of time, shareholders. Elkem did not carry out any transactions in its own grants the holder one vote and there are no structures granting
facilities amounting to NOK 4,916 million. to act quickly in connection with a transaction or other corpo- share in the financial year ended 31 December 2020. disproportionate voting rights.
The board of directors considers Elkem’s capital structure, rate events where it is in the shareholders and Elkem's interest In the event of a not immaterial transaction between the
including equity and debt structure, to be appropriate to the to increase the share capital. This authorisation was not utilised company and its shareholders, a shareholder's parent company, No deviations from the Code.
company’s objective, strategy and risk profile. in the financial year ended 31 December 2020. members of the board, executive management or closely-related
52 THE BOARD OF DIRECTORS’ REPORT ON CORPORATE GOVERNANCE ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 THE BOARD OF DIRECTORS’ REPORT ON CORPORATE GOVERNANCE 53
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written voting in a period prior to the general meeting. The com- The nomination committee shall make recommendations to
pany will in this respect provide information on the procedure the general meeting for the election of shareholder elected board
and prepare a proxy form/written voting form. The Company members and members of the nomination committee, and the
will nominate a person to act as proxy. remuneration of the board of directors and the nomination com-
All board members and members of the nomination commit- mittee. When nominating shareholder representatives to the
tee are encouraged, but not obliged, to be present at the annual board of directors, the nomination committee presents relevant
general meeting. Elkem has chosen not to follow the recommen- information about the candidates, together with an evaluation
dation to vote separately on each candidate nominated for the of their independence.
board of directors and the nomination committee. The process In connection with the nomination committee’s work with
of the nomination committee is focused on the combined qual- proposing candidates, and to ensure that the candidates repre-
ification and experience of the proposed members to the board sent a broad group of the company’s shareholders, the nomina-
of directors and the nomination committee and the voting should tion committee is in contact with the board of directors, the CEO
therefore also be combined. and major shareholders. Furthermore, the nomination commit-
tee ensures that the board of directors is composed to comply
Deviations from the code: Voting on members to the board of with legal requirements and the corporate governance code.
directors and the nomination committee takes place as a com- The nomination committee have justified its proposal for the
bined vote. Pursuant to the Code, the board of directors should board of directors. While the nomination committee presents
ensure that all board members attend the general meeting. Elkem relevant information about each candidate separately, the nom-
does not require all board members to attend, however, in accord- ination committee focuses on the combined qualifications and
ance with the Norwegian Public Limited Liability Companies Act, experience of the proposed members of the board of directors
Elkem requires the CEO, the chair of the board of directors and the when presenting its proposal to the general meeting. Information
chair of the nomination committee to attend the general meet- on how to propose candidates is available on Elkem’s website.
ing. Due to national restrictions in connection with Covid-19, the
board was represented by the presence of vice chair at the annual Deviations from the Code: The nomination committee justifies its
general meeting in 2020. proposals combined and not separately for each board member.
7. NOMINATION COMMITTEE 8. COMPOSITION AND INDEPENDENCE OF THE BOARD

Establishment and composition The board of directors of Elkem comprises 11 members, of which
According to section 7 of Elkem’s articles of association, the com- eight of the board members, including the chair, are shareholder
pany shall have a nomination committee consisting of two or elected. The remaining three board members are elected by the
three members in accordance with the decision of the general company’s employees.
meeting. The members of the nomination committee are elected As of 31 December 2020, the board of directors of Elkem
by the annual general meeting. The general meeting has also comprise the following persons:
approved guidelines for the duties of the nomination commit-
tee, elected the chair and determined the remuneration of the ■ Zhigang Hao / Chair / Representing the majority
6. GENERAL MEETINGS ■ the CEO, the chair of the board of directors and the chair members of the committee shareholder / Remaining term of office of one (1) year until
The board of directors will ensure that as many of the company’s of the nomination committee are present at the general The nomination committee comprise the following members, 2021;
shareholders as possible can participate in the general meeting. meeting. Due to the Covid-19 pandemic and relevant all of whom were elected on the annual general meeting in 2020: ■ Dag Jakob Opedal / Vice chair / Independent / Re-elected
The Covid-19 pandemic has necessitated electronic solutions due governmental restrictions, this may not be possible at in 2020 for a term of office of two (2) years until 2022;
to restrictions on meetings and physical presence. In 2020, Elkem all times. Due to national restrictions, the board was ■ Sverre S. Tysland / Chair / Practicing lawyer / Independent ■ Olivier Tillette de Clermont-Tonnerre / Board member
arranged for webcast solution for external and internal partici- represented by the presence of vice chair Dag Jakob / Re-elected in 2020 for a term of office of one (1) year until / Representing the majority shareholder / Re-elected in
pants that were prevented from attending the general meeting. Opedal. The chair of the nomination committee was also 2021; 2020 for a term of office of two (2) years until 2022;
The board of directors will further ensure that: present while the CEO participated through the webcast ■ Zhu Ziaolei / Committee member representing the ■ Yougen Ge / Board member / Representing the majority
solution; and majority shareholder / Elected in 2020 for a term of office shareholder / Re-elected in 2020 for a term of office of one
■ notices for the general meetings are sent to all shareholders ■ the general meeting is able to elect an independent chair of two (2) years until 2022; and (1) year until 2021;
individually, or to their depository banks, at least 21 days in for the general meeting. ■ Anne Kjølseth Ekerholdt / Committee member / Practicing ■ Helge Aasen / Board member / Representing the majority
advance, that all matters to be considered by the meeting lawyer / Independent / Remaining term of office of one (1) shareholder / Remaining term of office of one (1) year until
are specified and that relevant documents are made The articles of association of Elkem does not provide for any year until 2021. 2021;
available on the company’s website; deadline for the shareholders to give notice of their attendance at ■ Anja-Isabel Dotzenrath / Board member / Independent /
■ the resolutions and any supporting documentation are the general meeting. The board of directors may still encourage The members of the nomination committee have been elected Remaining term of office of one (1) year until 2021;
sufficiently detailed, comprehensive and specific, allowing shareholders to give such notice within a set deadline. to take into account the interests of shareholders in general. The ■ Caroline Grégoire Sainte Marie / Board member /
shareholders to understand and form a view on all matters Shareholders who are unable to be present at the general majority of the members are independent of the board of direc- Independent / Re-elected in 2020 for a term of office of
to be considered at the general meeting; meeting will be given the opportunity to vote by proxy or through tors and the executive management. one (1) year until 2021;
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■ Marianne Elisabeth Johnsen / Board member / of the board of directors and the CEO are in compliance with ■ Zhigang Hao / Chair / Representing the majority nected to the company’s financial reporting in the company’s
Independent / Remaining term of office of one (1) year until rules and standards applicable to the group and are described shareholder annual report. This covers the culture of control, risk assess-
2021; in the company’s annual report. The board of directors have ■ Anja-Isabel Dotzenrath / Member / Independent ment, controlling activities and information, communication
■ Terje Andre Hanssen / Board member / Employee also implemented procedures to ensure that members of the ■ Caroline Grégoire Sainte Marie / Member / Independent and follow-up. The board of directors is obligated to ensure that
representative / Term of office of two (2) years until the board of directors and executive personnel make the com- it is updated on the company’s financial situation, and to contin-
annual general meeting in 2022; pany aware of any material interests that they may have in The remuneration committee is a preparatory and advisory uously evaluate whether the company’s equity and liquidity are
■ Marianne Færøyvik / Board member / Employee items to be considered by the board of directors. The board committee for the board of directors in questions relating to the adequate in terms of the risk from, and the scope of, the com-
representative / Term of office of two (2) years until the of directors will also be chaired by some other member of the company’s compensation of the executive management. The pany’s activities, and shall immediately take necessary actions
annual general meeting in 2022 and; board if the board is to consider matters of a material char- purpose of the remuneration committee is to ensure thorough if it is demonstrated at any time that the company’s capital or
■ Knut Sande / Board member / Employee representative acter in which the chair of the board is, or has been, person- and independent preparation of matters relating to compensa- liquidity is inadequate. The company focuses on frequent and
/ Term of office of two (2) years until the annual general ally involved. tion to the executive personnel. The remuneration committee relevant management reporting to the board of directors. The
meeting in 2022. The board of directors held 8 board meetings in 2020. Three puts forth a recommendation for the board of directors’ guide- reports contain matters related to health and safety, market
board members were absent from one board meeting each. lines for remuneration to senior executives in accordance with development, operations and financial performance. The pur-
The composition of the board of directors is considered to Except for that, all board members attended all board meet- section 6-16a of the Norwegian Public Limited Liability Com- pose is to ensure that the board of directors has sufficient infor-
attend to the common interests of all shareholders and meet ings in 2020. panies Act. mation for decision-making and is able to respond quickly to
the company's need for expertise, capacity and diversity. Four The board of directors reports on any transactions with The members of the remuneration committee are elected by changing conditions or important incidents. Board meetings
of the board members are women, and none of the members related parties in the annual report. and amongst the members of the board of directors for a term are held regularly, and management reports are provided to
of the company's executive management are members of the The board of directors has established an audit committee of up to two years and are independent of the company’s exec- the board on a monthly basis.
board of directors. and a remuneration committee. utive management.
The board of directors is composed so that it can act inde- The board of directors has issued instructions for the work of No deviations from the Code.
pendently of any special interests. The majority of the share- No deviations from the Code. the remuneration committee.
holder elected board members are independent of the executive
management and material business connections of the company. The audit committee No deviations from the Code. 11. REMUNERATION OF THE BOARD OF DIRECTORS
Further, four out of the eight shareholder elected board mem- The board of directors has established an audit committee which The remuneration to the board of directors is determined by the
bers are independent of the company’s majority shareholder. is a working committee for the board of directors, preparing mat- shareholders at the annual general meeting based on a proposal
Further information on each of the board members is pre- ters and acting in an advisory capacity. The audit committee is 10. RISK MANAGEMENT AND INTERNAL CONTROL from the nomination committee. The level of remuneration to the
sented at www.elkem.com and information on their record of responsible for overseeing financial reporting and disclosure and It is ultimately the responsibility of the board of directors to board of directors is considered to reflect an international level
attendance at board meetings can be found in note 10 to the assists the board of directors with assessments of the integrity ensure that the company has sound and appropriate internal con- and the board of directors’ responsibility, expertise, the com-
consolidated financial statements. of the company’s financial statements, financial reporting pro- trol systems and risk management systems reflecting the extent plexity of the company and its business, as well as time spent
Members of the board of directors are encouraged to own cesses and internal controls, risk management and performance and nature of the company’s activities. Sound risk management and the level of activity in both the board of directors and any
shares in the company, however, with caution not to let this of the external auditor. is an important tool to create trust, ensure good environment, board committees.
encourage a short-term approach which is not in the best inter- The board of directors has issued instructions for the work health and safety standards and enhance value creation. Inter- The remuneration of the board of directors is not linked to the
ests of the company and its shareholders over the longer term. of the audit committee, and the duties and composition of the nal control should ensure effective operations and prudent man- company’s performance and Elkem does not grant share options
As at 31 December 2020, the following board members owned committee are in compliance with the Norwegian Public Limited agement of significant risks that could prevent the group from to its members of the board of directors.
shares in the company: Helge Aasen (86,206 shares), Olivier Liability Companies Act. attaining its targets. Elkem’s internal controls and systems also The board members, or companies associated with board
Tillette de Clermont-Tonnerre (15,517 shares), Caroline Grégoire The members of the audit committee are elected by and cover the company’s corporate values, ethical guidelines and members, have not been engaged in specific assignments for
Sainte Marie (2,300 shares), Dag Jakob Opedal (40,000 shares), amongst the members of the board of directors for a term of standards to ensure good performance in ESG. the company in addition to their appointments as members of
Marianne Elisabeth Johnsen (15,000 shares) and Marianne up to two years and comprise the following persons: Elkem complies with all laws and regulations that apply to the board of directors.
Færøyvik (4,950 shares). the group’s business activities. The group’s Code of conduct The remunerations for the period from May 2020 until the
■ Dag Jakob Opedal / Chair / Independent sets out the overall ethical guidelines, which apply to all Elkem annual general meeting in 2021 are as follows:
No deviations from the Code. ■ Marianne Elisabeth Johnsen / Member / Independent employees, members of the board of directors as well as those
■ Olivier Tillette de Clermont-Tonnerre / Member / acting on Elkem’s behalf. Board of directors:
Representing the majority shareholder The company has a comprehensive set of relevant corporate ■ Chair: NOK 750,000
9. THE WORK OF THE BOARD OF DIRECTORS manuals and procedures, which provide detailed descriptions ■ Deputy chair: NOK 562,500
The board of directors' work follows an annual plan, with par- The committee members have the overall competence of procedures covering all aspects of managing the operational ■ Board members: NOK 375,000
ticular focus on objectives, strategy and implementation. The required to fulfil their duties based on the organisation and oper- business. The procedures and manuals are continuously revised ■ Observers: NOK 187,500
plan is evaluated and approved around the beginning of each ations of the group, at least one member of the audit committee to reflect best practice derived from experience or adopted
calendar year. The board of directors also annually evaluates its is competent in respect of finance and audit. The majority of the through regulations. Audit committee:
performance and expertise, the evaluation is presented to the members are independent of the business. The board of directors conducts annual reviews of the com- ■ Leader: NOK 135,000
nomination committee. pany’s most important areas of exposure to risk and such areas’ ■ Members: NOK 90,000
The board of directors has implemented instructions for The remuneration committee internal control arrangements. A summary of the main risks is
the board of directors and the executive management, which The board of directors has appointed a remuneration committee presented in the annual report. Remuneration committee:
are focused on determining allocation of internal responsibil- which comprise the following persons: The board of directors describes the main features of the ■ Leader: NOK 135,000
ities and duties. The objectives, responsibilities and functions company’s internal control and risk management systems con- ■ Independent members: NOK 90,000
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The total compensation to members of the board of direc- best practice at all times and all communications with sharehold- advantage at the expense of other shareholders or the The board of directors otherwise concurs with what is stated in
tors in 2020 is disclosed in note 10 to the consolidated financial ers shall be in compliance with the provisions of applicable laws company; the Code regarding this issue.
statements. and regulations and in consideration of the principle of equal ■ the board of directors shall not enter into an agreement
treatment of the company’s shareholders. with any offeror that limits the company's ability to arrange No deviations from the Code.
No Deviations from the Code. Investor contact/investor relations (IR) activities are con- other offers for the company's shares, unless it is self-
ducted in accordance with the IR policy and by the IR team only. evident that such an agreement is in the common interest
The IR team comprises the CEO, the CFO and the VP Finance of the company and its shareholders; 15. AUDITOR
12. REMUNERATION OF EXECUTIVE PERSONNEL and Investor relations. ■ the board of directors and executive management shall The board of directors is responsible for ensuring that the board
The board of directors prepares guidelines for the remuneration The company publishes an annual, electronic financial calen- not institute measures with the intention of protecting the and the audit committee are provided with sufficient insight into
of executive management which support Elkem's prevailing strat- dar with an overview of dates for important events, such as the personal interests of its members at the expense of the the work of the auditor. In this regard, the board of directors
egy and values. These guidelines include the main principles for annual general meeting, interim financial reports, public pres- interests of the shareholders; and ensured that the auditor submitted the main features of the plan
the company’s remuneration policy and contributes to aligning entations and payment of dividends, if applicable. ■ the board of directors must be aware of the particular for the audit of the company to the audit committee in 2020. Fur-
the interests of the shareholders and the executive manage- In addition to the board of directors’ dialogue with the com- duty it has for ensuring that the values and interests of the ther, the board of directors invited the auditor to participate in
ment. The guidelines are communicated to the annual general pany’s shareholders at general meetings, the board of directors shareholders are protected. the board meeting that dealt with the annual accounts. At these
meeting and the board of director's statement will be presented promotes suitable arrangements for shareholders to commu- meetings, the auditor (i) reports on any material changes in the
in a separate appendix to the agenda for the general meeting. nicate with the company at other times. The board of directors In the event of a take-over offer, the board of directors will, in company's accounting principles and key aspects of the audit,
Performance-related remuneration of the executive manage- have delegated this task to the IR team. Elkem has held regular addition to complying with relevant legislation and regulations, (ii) comments on any material estimated accounting figures, and
ment in the form of share options, bonus programmes or similar investor meetings in connection with each of the quarterly pres- seek to comply with the recommendations in the Code. This (iii) reports all material matters on which there has been disa-
are linked to value creation for shareholders or the company’s entations in 2020 and participated on several investor confer- includes obtaining a valuation from an independent expert. On greement between the auditor and the executive management
profit over time. As at 31 December 2020, 22,767,000 options ences. The IR team has met with investors from Oslo, London, this basis, the board of directors will make a recommendation of the company.
were outstanding to members of the management and certain Frankfurt and other cities. Due to the Covid-19 pandemic, most as to whether or not the shareholders should accept the offer. Once a year, the board of directors reviews the company's
other key employees, of which 7,267,000 were granted in 2018, of these meetings and conferences have taken place on vari- A takeover process gives rise to a particular duty of care to internal control procedures with the auditor, including weak-
7,500,000 were granted in 2019 and 8,000,000 were granted ous electronic platforms. The plan is to arrange regular investor disclose information, where openness is an important tool for the nesses identified by the auditor and proposals for improvement.
in 2020. Each option granted in 2018 gives the option holder meetings and a capital market day when it is considered expe- board of directors to ensure equal treatment of all shareholders. In this regard, a review of the company's internal control proce-
the right to subscribe or purchase one share in Elkem ASA at an dient in order to keep the market up-to-date about the compa- The board of directors shall strive to ensure that neither inside dures with the auditor, including weaknesses identified by the
exercise price of NOK 38.52, which is equal to the share price ny’s development, goals and strategies. information about the company, nor any other information that auditor and proposals for improvement, was carried out by the
at closing on 13 September 2018. Each option granted in 2019 must be assumed to be relevant for shareholders in a bidding board of directors in 2020.
gives the option holder the right to subscribe or purchase one No deviations from the Code. process, remains unpublished. In order to ensure the auditor's independence of the compa-
share in Elkem ASA at an exercise price of NOK 23.53, which is There are no other written guidelines for procedures to be ny's executive management, the board of directors has estab-
equal to the average of the share price at closing on the first 20 followed in the event of a takeover offer. The company has not lished guidelines in respect of the use of the auditor by the
trading days in July 2019. Each option granted in 2020 gives 14. TAKE-OVERS found it appropriate to draw up any explicit basic principles for management for services other than the audit.
the option holder the right to subscribe or purchase one share Elkem has one major shareholder controlling 58.2% of the shares Elkem’s conduct in the event of a take-over offer, other than the
in Elkem ASA at an exercise price of NOK 19.10, which is equal to as at 31 December 2020. Elkem has not been subject to any take- actions described above. No deviations from the Code.
the average of the share price at closing on the first 20 trading over bids in 2020.
days in July 2020. The options will vest over a period of three In the event of a takeover bid, the board of directors and
years from grant with one-third vesting each year. Participants executive management each have an individual responsibility
may not in any calendar year realise a total gain on exercise of to ensure that the company’s shareholders are treated equally
options which is in excess of two times (four times for the CEO) and that there are no unnecessary interruptions to the compa-
the employee's base salary. ny’s business activities. The board of directors has a particular The board of directors of Elkem ASA
responsibility in ensuring that the shareholders have sufficient Oslo, 10 March 2021
No deviations from the Code. information and time to assess the offer.
In the event of a take-over process, the board of directors
shall abide by the principles of the Code, and also ensure that
13. INFORMATION AND COMMUNICATIONS the following take place: Zhigang Hao Dag Jakob Opedal Caroline Grégoire Sainte Marie Yougen Ge
Elkem is under an obligation to continuously provide its share- Chair of the Board Deputy chair Board member Board member
holders, Oslo Børs and the financial markets in general with ■ the board of directors will not seek to hinder or obstruct
timely and precise information about the company and its opera- any takeover offer for the company’s operations or shares
tions. Relevant information is given in the form of annual reports, unless they have valid and particular reasons for doing so; Anja-Isabel Dotzenrath Olivier Tillette de Clermont-Tonnerre Marianne Elisabeth Johnsen Helge Aasen
quarterly reports, press releases, notices to the stock exchange ■ the board of directors shall not exercise mandates or Board member Board member Board member Board member
and investor presentations in accordance with what is deemed pass any resolutions with the intention of obstructing
appropriate from time to time. Elkem maintains an open and pro- the takeover offer unless this is approved by the general
active policy for investor relations and has given regular pres- meeting following announcement of the offer; Terje Andre Hanssen Marianne Færøyvik Knut Sande
entations in connection with annual and quarterly results. The ■ the board of directors shall not undertake any actions Board member Board member Board member
goal is that Elkem’s information work shall be in accordance with intended to give shareholders or others an unreasonable Michael Koenig
Chief Executive Officer
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To the Board of Directors in Elkem ASA The procedures we performed were based on our professional judgment and included inquiries,
observation of processes performed, inspection of documents, analytical procedures, evaluating the
appropriateness of quantification methods and reporting policies, and agreeing or reconciling with
underlying records.
Report on Elkem ASA’s greenhouse gas emissions reporting
Given the circumstances of the engagement, in performing the procedures listed above, we:
We have undertaken a limited assurance engagement of the accompanying statement of Elkem ASA’s • Through inquiries, obtained an understanding of Elkem ASA's control environment and
measurements and reporting of greenhouse gas emissions (“GHG emissions”) for the period information systems relevant to emissions quantification and reporting, but did not evaluate
1 January 2020 – 31 December 2020. Measurements and reporting of GHG emissions are presented the design of particular control activities, obtain evidence about their implementation or test
in the ESG report section of Elkem’s 2020 annual report, specifically in the two tables presented on their operating effectiveness.
page 65 of the annual report.
• Evaluated whether Elkem ASA's methods for developing estimates are appropriate and had
Our limited assurance engagement comprises whether Elkem has developed measurements and been consistently applied. However, our procedures did not include testing the data on which
reporting of GHG emissions and whether the GHG emissions are presented according to the GHG the estimates are based or separately developing our own estimates against which to evaluate
Protocol Corporate Accounting and Reporting Standard published by the World Resources Institute Elkem ASA's estimates.
and the World Business Council for Sustainable Development (criteria). The GHG Protocol Corporate • Performed procedures to assess the completeness of the reported emissions sources, data
Accounting and Reporting Standard is available at https://ghgprotocol.org/corporate-standard. collection methods, source data and relevant assumptions applicable to a selection of Elkem
ASA’s plants. The plants selected for test procedures were chosen taking into consideration
Tasks and responsibilities of management their emissions in relation to total emissions and emissions sources. Our procedures did not
Management is responsible for Elkem’s GHG emissions reporting and that the GHG emissions are include testing information systems to collect and aggregate facility data, or the controls at
measured and reported in accordance with the GHG Protocol Corporate Accounting and Reporting these sites.
Standard. Their responsibility includes developing, implementing and maintaining internal controls that
ensure appropriate measurement and reporting of GHG emissions. The procedures performed in a limited assurance engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance
Our independence and quality control obtained in a limited assurance engagement is substantially lower than the assurance that would have
We are independent of the company in accordance with applicable laws and regulations and the Code been obtained had we performed a reasonable assurance engagement. Accordingly, we do not
of Ethics for Professional Accountants (IESBA Code) and with the ethical requirements that are express a reasonable assurance opinion about whether Elkem ASA's GHG statement has been
relevant to our independent statement, and we have fulfilled our ethical obligations in accordance with prepared, in all material respects, in accordance with the GHG Protocol Corporate Accounting and
these requirements and IESBA Code. We use ISQC 1 - Quality Control for Firms that Perform Audits Reporting Standard published by the World Resources Institute and the World Business Council for
and Reviews of Financial Statements, and Other Assurance and Related Services Engagements and Sustainable Development applied as explained in Note 1 to the GHG statement.
maintains a comprehensive quality control system including documented policies and procedures of
the ethical standards, professional standards and applicable legal and regulatory claim. Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come
The Auditors responsibilities to our attention that causes us to believe that Elkem ASA's GHG statement for the period 1 January
Our responsibility is to express a limited assurance conclusion on Elkem ASA’s GHG emissions 2020 – 31 December 2020, is not prepared, in all material respects, in accordance with the GHG
reporting based on the procedures we have performed and the evidence we have obtained. We have Protocol Corporate Accounting and Reporting Standard published by the World Resources Institute
performed our work and will issue our statement in accordance with the International Standard on and the World Business Council for Sustainable Development applied as explained in Note 1 to the
Assurance Engagements ISAE 3410 Assurance Engagements on Greenhouse Gas Statements. That GHG statement.
standard requires that we plan and perform this engagement to obtain limited assurance about
whether the GHG statement is free from material misstatement.
Oslo, 11 March 2021
A limited assurance engagement undertaken in accordance with ISAE 3410 involves assessing the PricewaterhouseCoopers AS
suitability in the circumstances of Elkem ASA's use of GHG Protocol Corporate Accounting and
Reporting Standard as the basis for the preparation of the GHG statement, assessing the risks of
material misstatement of the GHG statement whether due to fraud or error, responding to the
assessed risks as necessary in the circumstances, and evaluating the overall presentation of the GHG Anders Ellefsen
statement. A limited assurance engagement is substantially less in scope than a reasonable State authorized public accountant (Norway)
assurance engagement in relation to both the risk assessment procedures, including an understanding
of internal control, and the procedures performed in response to the assessed risks.
(2)
PricewaterhouseCoopers AS, Postboks 748 Sentrum, NO-0106 Oslo

T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
60 ASSURANCE OF ELKEM’S GHG EMISSIONS ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 ASSURANCE OF ELKEM’S GHG EMISSIONS 61
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Your notes Your notes
62 YOUR NOTES ELKEM ESG REPORT 2020 ELKEM ESG REPORT 2020 YOUR NOTES 63
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Elkem ASA
Visiting address: Postal address: T: +47 22 45 01 00
Drammensveien 169 P.O. Box 334 Skøyen F: +47 22 45 01 55
0277 Oslo, Norway NO-0213 Oslo www.elkem.com

Elkem Esg Report - 2020

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hange E hange E

Отчет ESG за 2020 год

Об Elkem в двух словах

Кто мы и чем занимаемся Содержание

ESG - главный приоритет и ключевое преимущество

ESG – Ключевые моменты 2020

83% 25% 77% 64%

67% 20% 24%

Письмо генерального директора

Вызовы и возможности - цепочка поставок Elkem

Введение: развитию общества - это отличная возможность. Продук-

Устойчивое развитие Elkem в 2020

• Потенциал для дальнейшего повы-

НЫЕ ДЛЯ ЦЕПОЧ-

Ценности компании Elkem Сотрудники и

формируют наше деловое

Оценка существенности Подробный обзор заинтересованных сторон компании Elkem,

Приоритет заинтересованных сторон

Elkem’s contribution to the

Total waste generated: Total waste diverted

Energy management Waste management

Major waste streams are:

Waste numbers for 2020:

Total waste generated 356,156

Hazardous waste to landfill 6,031 Delivered to approved sites

Total waste directed to disposal: 118,511 33% of total waste generated

Oils and chemicals to recycling 1,945

Scrap, packaging, etc. to recycling 4,687

Microsilica 136,322 Off-gas fume processed to sales product

In addition to raw material and production waste that goes to

Other emissions to air

Dust 30% reduction by Increase of dust emission

Health and safety

Employees – disclosure of work-related injuries* Labour rights

Diversity and equality

Community engagement and dialogue

Turnover rate 5.4% 8% 6%

Female share of new hires 22% 30% 26%

Europe 241 327 115

ESG: include employees’ completion of compliance training in order to

Governance embracing a wide range of climate and environment-, health and

2,830 3,334 100%

KPIs Unit 2018 2019 2020 Risk management

Product stewardship Responsible sourcing and the supply chain

KPI Unit 2018 2019 2020 Comment

Share of new raw material suppliers subject to % 80% 73% 100%

Adverse human rights events identified in Number 0 0 0

The board of directors’ report on

Elkem is subject to corporate governance reporting require- 2. BUSINESS

7. NOMINATION COMMITTEE 8. COMPOSITION AND INDEPENDENCE OF THE BOARD

PricewaterhouseCoopers AS, Postboks 748 Sentrum, NO-0106 Oslo

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